In an age of globalisation, significant trade is carried on across borders with the result that, when businesses collapse or require restructuring (because of financial difficulties or possibly following takeovers and mergers), there will be a multi-jurisdictional problem. The most pressing concern will be how to manage these cross-border dimensions.
In recent years, the EU has led the way to resolving these problems with innovative cross-border mechanisms to manage insolvencies and restructuring which have attracted world-wide attention. Further, for decades the UK has pioneered a form of restructuring called a scheme of arrangement which also attracts international attention as a method of addressing corporate insolvencies, in particular.
This module will focus on:
- The recast EU Insolvency Regulation, currently Regulation 2015/848, as a pre-eminent form of cross-border insolvency regime;
- The EU Cross-Border Mergers Directive, currently Directive 2017/1132, as an innovative mechanism for cross-border restructuring within the EU; and
- The UK scheme of arrangement under the companies legislation, as an exemplar of a corporate law restructuring mechanism. Many overseas companies have taken advantage of these provisions in recent years.