Mokal, R;
(2020)
The difficulties with “financial difficulties”: the threshold conditions for the new Pt 26A process.
Butterworths Journal of International Banking and Financial Law
, 30
(10)
pp. 462-664.
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Abstract
The new arrangements and reconstructions mechanism inserted in the Companies Act 2006 as Pt 26A by the Corporate Insolvency and Governance Act 2020 is a welcome addition to the restructuring toolkit available in this jurisdiction. On any view, it will add powerfully to the ability of restructuring professionals to assist distressed debtors and their stakeholders. Unfortunately, the threshold requirements that the debtor company be in “financial difficulties” affecting “its ability to carry on business as a going concern”, and that the plan it proposes should address these difficulties or their effect are deeply confused and themselves likely to create difficulties. This article highlights the key problems and shows how they arise, why they are unnecessary, and how they might be fixed.
| Type: | Article |
|---|---|
| Title: | The difficulties with “financial difficulties”: the threshold conditions for the new Pt 26A process |
| Open access status: | An open access version is available from UCL Discovery |
| Publisher version: | https://www.lexisnexis.com/uk/legal/docview/getDoc... |
| Language: | English |
| Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of Laws |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10131885 |
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