As market participants will know, the appeal in the Apcoa II scheme of arrangement settled just before Christmas. While welcome for the players involved, it deprived the market of the clarity of a Court of Appeal judgment on many scheme issues such as jurisdiction, the imposition of new obligations and class composition. In the absence of the Court of Appeal’s review, we offer our own reflection on the current state of key issues arising on schemes of arrangement in financial restructurings.
This bulletin, the first of three, covers jurisdiction, stays on challenges in foreign courts, new money and the imposition of new obligations, and class composition. Our second bulletin will address issues of valuation, third party releases, voting by ultimate beneficial holders and amendments to schemes. Our third bulletin will contrast US Chapter 11 proceedings with schemes of arrangement.
This bulletin assumes a certain level of background knowledge. For additional information, please see our newly-updated introductory guide to Schemes of Arrangement as Restructuring Tools.