CBInsolvency LLC

Thought Leadership


Hello friends and colleagues –

In June 2020, the UK adopted the Corporate Insolvency and Governance Act (CIGA), making several permanent changes to its restructuring and insolvency laws.  Building on the success of restructuring finance debt through the scheme of arrangement procedure (which is not an insolvency procedure) under Article 26 of the Companies Act 2006 of England and Wales, CIGA added a new non-insolvency restructuring plan process (RP Process) as Article 26 A of the Companies Act.  Under the existing Article 26, a scheme of arrangement binds all creditors in classes that accept the scheme by a majority in number representing 75% in amount of affected debt, but it does not affect non-accepting classes.  Under the new Article 26A, the RP Process requires that at least one class of affected creditors accept the plan by a majority of 75% in amount (with no numerosity requirement).  The RP Process further permits non-accepting classes to be bound in certain circumstances so long as at least one class has accepted. The attached report by CBI Principal Dan Glosband discusses the English scheme of arrangement and RP Process in more detail.  While quite new, the RP Process has already been used successfully by Virgin Atlantic Airways and Pizza Express.
By the way, the first section of the Report is essentially “Schemes in a Nutshell”, providing a concise refresher on how schemes work.

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In a cross-border insolvency matter, if an expert opinion is required, if skilled mediation or arbitration can help resolve disputes, or if cross-border insolvency is simply unfamiliar territory, CBI can help

We will be pleased to discuss your cross-border insolvency issues and agree on a case-specific arrangement to assist you.  Please reach out to any of us for a quick and easy assessment of how we can help you. We welcome your thoughts, comments and questions. 


Hon. Leif Clark (ret.) was a U.S. Bankruptcy Judge for over 25 years. He has an international reputation for influencing the development of insolvency law both domestically and internationally. He has broad experience in international legislative development, the training of lawyers and judges, scholarship and as a sought-after mediator of complex disputes involving finance and insolvency.
Jack Esher has over 25 years of experience as a mediator, arbitrator and neutral adviser, including mediation of cross-border disputes in the country’s biggest cases. A pioneer in developing mediation as an innovative and effective dispute resolution process in insolvency matters, he has conducted mediation and negotiation trainings nationally and internationally for professionals, business leaders and judges.
Dan Glosband has 45 years of sophisticated insolvency practice, focusing on cross-border cases. He was part of the small drafting group for the UNCITRAL Model Law on Cross-Border Insolvency, one of the primary draftsmen of Chapter 15 of the Bankruptcy Code and has been an expert witness on U.S. insolvency law in major foreign proceedings.
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CBInsolvency LLC · 34 Atlantic Avenue · Swampscott, MA 01907 · USA

By Dan Glosband