Schemes of arrangement have bigger problems than Brexit

Author: Jimmie Franklin | Published: 24 May 2019

Lawyers in London and on the continent have agreed that the UK’s reputation as a restructuring hub will not face direct consequences from Brexit – at least in the short term.

Jo Windsor, partner at Linklaters, said that when the referendum result first came to fruition in 2016, "the potential impact of the referendum on cross-border insolvencies with a European element triggered an initial knee-jerk sense of panic".

He continued: "we had to stand back, take a deep breath and assess exactly where we stood, bearing in mind that people had been successfully managing cross-border cases long before the existing European framework came into place".

Frédéric Verhoeven, partner at Dutch firm Houthoff agreed. "Whatever happens, even in the instance of a no-deal Brexit, the UK will still be an interesting hub for companies worldwide to restructure their businesses via the English scheme of arrangement," he said. "Scheme proceedings never specifically...