ENGLAND & WALES
As at 29 January 2018
By Paul Omar
Senior Lecturer, De Montfort University
Technical Research Coordinator, INSOL Europe
Senior Lecturer, De Montfort University
Technical Research Coordinator, INSOL Europe
| Proceedings | Elements of the Directive already included into the national legislation |
At present, the only procedure to approximate the structure and outcomes of the Draft Directive is the scheme of arrangements. The Scheme, which is public, is regarded as a corporate proceeding in nature and intended to function outside the insolvency framework. However, in practice, it has been used in situations where debtor companies have been near insolvency or of doubtful solvency: e.g. in Re Drax Holdings Ltd; Re Inpower Ltd [2004] 1 BCLC 10 |
| Proceedings | Elements of the Directive which may be included into the national legislation |
| Gateway Moratorium |
The Government launched a consultation in 2016 in which the proposal was made for a gateway moratorium that would give access to a suspensory procedure under supervision in which restructuring could take place. The outcome of this consultation is not yet known, although a summary of responses is available at: <https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/578524/Summary_of_responses_26-10-16_Redacted.pdf>. The contents of the proposal seem to anticipate the structure of the preventive restructuring procedure in the directive without however the level of detail that would permit an article by article comparison. |