Clifford Chance

Restructuring Schemes: A comparison between the new UK, Dutch and German tools

14 December 2020

International law reform in the context of restructuring and insolvency has been gathering pace for a number of years. The focus is very much on the development of pre-insolvency and restructuring regimes rather than formal insolvency proceedings. They are designed to encourage investment with clear, efficient and cost-effective rules on restructuring. Recent reforms have taken place in various jurisdictions and most recently in the UK, the Netherlands and Germany. In the UK a new restructuring plan was introduced, in addition to the already existing Scheme of Arrangement, which includes cross class cram down. The Netherlands will be able to use a long-awaited restructuring plan to cram down dissenting creditors starting 1 January 2021. And Germany is expected to follow soon, by implementing a similar regime at the beginning of 2021.

This publication provides a comparison of key features of the new regimes in these three jurisdictions.

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