Headlined as a modern approach to business insolvency (a.k.a. Chapter 11 plus), the long-awaited EU proposal on business restructuring is every turnaround manager’s dream come true; an early Christmas present and wishes fulfilled beyond expectation. Having spent over 15 years banging on about consensual pre-insolvency restructuring saving enterprise value for creditors and jobs for employees I can only say how delighted I am. Congratulations to all those enlightened professionals and professional organisations for their commitment to the cause.
It still has to pass through the European parliament, emerge as a Directive mandatory in all member states and then get adopted in each country. It could be two years before it becomes effective, too late for Brexit Britain. The UK has its own draft proposals battling for acceptance against secured creditor and IP headwinds. Even in its current form this proposal will be left behind by the EU Directive. Once it was German and Spanish professionals moaning about forum shopping to London and Schemes of Arrangement. Now the boot could be on the other foot. Wake up time, and time for British pragmatism in accepting the inevitable. Consensual restructuring is good for “UK Plc”.
Alan Tilley – Managing Partner & Chairman, BM&T
5th December 2016
