UK insolvency laws - best in the world! - schemes of arrangement to have their day
The Insolvency Service will be pleased to note two recent articles in Accountancy Age and The Financial Times, which extol the virtues of English and Welsh corporate insolvency laws. The two articles highlight a species of Delaware effect in relation to the English and Welsh corporate insolvency laws. We are, it seems, luring in companies to our jurisdiction. Similar effects have been seen on the personal side of insolvency recently, as noted on this blog.
Whilst some may carp and question the efficacy of attracting such risk to our shores, others, such as the Lord Mandelson at BIS, will see this as further news that UK plc is increasingly becoming a more attractive place to do business, and indeed, fail in business.
I was particularly interested to note that:
"They say a range of European companies are considering relocating so that they can use "schemes of arrangement" or insolvency proceedings to force through debt restructurings if they cannot agree terms with all their stakeholders."
I have recently written at length on this issue for Butterworths' Journal of International and Financial Law (July 2009). See here. Schemes have for too long been neglected. It seems as if they are now to have their time in the sunlight.
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...