Can English schemes survive Brexit?

Author: Lizzie Meager | Published: 7 Feb 2017

Lawyers are divided over the future of foreign companies’ use of schemes of arrangement, a flexible English court agreement often employed as a restructuring tool, in a post-Brexit world.

Panellists at IFLR’s European In-house Counsel Summit in London last month argued that the English courts’ increasing willingness to accept jurisdiction on a range of cases, along with the precedent of non-EU companies using them, is testament to this.

Brexit puts London's reputation as the 'bankruptcy brothel of Europe' under threatStephen Phillips, partner and co-head of restructuring at Orrick Herrington & Sutcliffe in London thinks that market participants may view the UK’s exit as an opportunity to make schemes less popular.
According to Phillips, some lawyers in EU member states see the process as a form of imperialism. "[Brexit] could be the perfect situation where local courts kick back against the whole concept and don’t recognise...