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
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...