How APCOA Parking decision could boost UK schemes

Author: Tom Young | Published: 7 May 2014

The use of UK schemes of arrangement (SOA) for foreign-incorporated companies has been boosted by a decision to allow German company APCOA Parking to utilise a scheme despite minimal connection to the country.

Last month’s English court decision held that an amendment from a German to English governing law clause in the facilities agreement by majority lender consent was enough to give the English court jurisdiction to sanction a SOA.

The decision further strengthens the position of the UK as a restructuring hub, with comparable benefits to – although lower costs than – the US. "This may be an appropriate alternative to Chapter 11," said Karl Clowry, partner at Paul Hastings in London....