POLL: Which restructuring scheme?

Author: IFLR Correspondent | Published: 12 Dec 2014
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The US Chapter 11 process has historically been preferred by restructuring practitioners globally for bankruptcies with a US nexus. It is one of the only regimes to incorporate an extraterritorial element – a global automatic stay that makes it possible to secure assets around the world.

In particular the restructurings of Bahrain-based Arcapita and Taiwan Maritime Transportation under Chapter 11 of the US Bankruptcy Code proved that the country’s bankruptcies are willing to accept cases that have a limited relationship to the US.

But the UK’s scheme of arrangement process is quickly gaining support. Restructurings such as that of Vinashin, with a limited UK nexus, and APCOA Parking – in which the company had actually switched its lending agreements from being under German law to under UK law in order to have a UK nexus – have proved the flexibility of a UK scheme of arrangement.

The flexibility of cross-border restructurings – and both the US and UK’s increasing willingness to become involved in cases with a limited nexus to their respective jurisdictions – has sparked IFLR’s next quick poll: Which restructuring plan is preferable?

Vote now on the Quick Poll box on the right of IFLR’s homepage. All votes are anonymous.

The results will be published in the February issue of IFLR magazine.

See also

How APCOA Parking could boost UK schemes

First Asian restructure under UK SOA explained

Arcapita: how non-US firms can use Chapter 11