Since the start of the current credit crunch there has been a significant increase in the use of schemes of arrangement as restructuring tools. In most cases a scheme will be the fall-back strategy for use in cases where consensual changes to creditors’ and/or shareholders’ rights under finance documents cannot be negotiated. Often the need for a scheme will fall away, but the prospect of a scheme will have helped deliver the consensus. So as well as those schemes that see their way through to implementation, there are many draft schemes in the marketplace.
The Weil London Restructuring Team has produced a client note on schemes of arrangement, which provides an overview of the use of creditor schemes of arrangements and highlights key practice points.
View our Client Guide to Schemes of Arrangement