The concept of a restructuring plan was introduced by the Corporate Insolvency and Governance Act 2020. Similar to a scheme of arrangement, it is a court-supervised process that allows a company to enter into a compromise with its creditors if at least 75% in value of creditors in each class vote in favour of it. A restructuring plan can bind both secured and unsecured creditors. Subject to various conditions being satisfied, and the exercise by the court of its discretion, this is the case even where some classes do not vote in favour of the restructuring plan. If sanctioned, the restructuring plan is implemented and will bind each class of creditor affected by it.
In our latest #How2DoPensions quick guide, we take a look at restructuring plans and why this relatively new insolvency process is important for pension trustees.
Please contact any member of our pensions team for more information.
