The UK Restructuring Plan (RP) in an Age of Uncertainty

The Corporate Governance and Insolvency Act 2020 (CIGA) introduced a new kid on the block in terms of UK restructuring law and practice namely, the "restructuring plan" or RP. The new procedure was introduced to reduce or mitigate the effect of any financial difficulties which have affected or will affect the ability of a company to carry on its business as a going concern. In many ways, the new procedure is similar to the existing scheme of arrangement procedure. In official reviews, CIGA in general, and the RP in particular, has been hailed for expanding the range of options available to distressed companies in the UK and for keeping the UK at the forefront of international insolvency developments, not least by introducing a cross class cram-down power which the scheme of arrangement previously lacked. This paper will critically analyse the RP procedure. While introducing cross-class cramdown and in this respect similar to the US Ch.11, the RP differs in many respects not least by not having an "absolute priority" principle. The paper suggests that, at the very least, the RP keeps the UK at the forefront of international insolvency developments. In a fragmented Europe, there is a certain merit in having a main mover position.