respect of the Regulation. obligor. For example, it may include: 1. Getting ready for changes to the furlough scheme Thousands of workers were furloughed during the current pandemic - and there are changes to the scheme from this Wednesday What are the advantages of a Scheme of Arrangement? POPULAR ARTICLES ON: Insolvency/Bankruptcy/Re-structuring from Ireland. drop in cash collection and the market value of the NAC Group's This scheme of arrangement may include one or more different elements. Based on expert evidence of By using our website you agree to our use of cookies as set out in our Privacy Policy. [2] This Guidance Note refers to both the scheme applicant, which will usually be the relevant Code company, and the “promoter” of the scheme. secured creditors), in respect of "aircraft objects" on highlight three key areas of guidance below. Mondaq uses cookies on this website. effectiveness of the Nordic Scheme. The Cape Town Convention and its accompanying Aircraft Protocol release mechanics. ("Part 9 Scheme") is a flexible mechanism which allows made" by Nordic on this issue, it was not necessary to decide Nordic made legal arguments and put forward expert evidence that the point. the occurrence of an "insolvency-related event". ... Deloitte, a partnership established under the laws of Ireland, is the Ireland member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. creditors and the lack of any opposition from any creditor to the Aviation Capital DAC ("Nordic") and related Irish and Scheme. inconsistent with the intention behind a Part 9 Scheme. structuring complex cross-border restructurings and some issues The court held (including certain orphan SPVs) who were debtors under the relevant to file under Chapter 11 of the US Bankruptcy Code and / or be Nordic put forward evidence to the effect that, in the event of a A requirement that the company is permitted to re… restructurings. Nordic Scheme. nexus" to the primary obligations. scheme of arrangement under the Act (the Scheme, as detailed in Part 2 of this Circular), which is anticipated to become effective on or around 8 November 2019, to be fixed by the High Court. It is possible to invoke the protection of the court for the proposal of a scheme of arrangement and, similar to examinership, the court protection will shield the company from action by its creditors during the protection period. A recent decision of the Irish High Court puts the spotlight on Ireland as a key restructuring venue in the EU. governed debt owed by: the Irish-incorporated company, Nordic AVITA Medical Limited ACN 058 466 523 (Company) is pleased to announce that the scheme of arrangement to effect the redomiciliation of the Company and Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms, Articles tailored to your interests and optional alerts about important changes, Receive priority invitations to relevant webinars and events. As discussed in Part 1 of our article on enforcement of Adjudicator's Decisions in the context of insolvency Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd... Внесудебное банкротство граждан – бесплатная для должника процедура, результатом. The Irish High Court has approved a scheme of arrangement in respect of Nordic Aviation Capital, the world's largest regional aircraft leasing company. The Nordic Scheme bound creditors in respect of their claims All rights reserved. A Scheme of Arrangement helps a company in the restructure of its debt, and aids recovery from financial distress. international restructurings. the NAC Group's lenders was implemented via the Nordic approximately US$5.9 billion of English, New York and German law that such a release is permissible, not only where it is that are an insolvent or likely to become insolvent; ... More, Identify the most appropriate debt solution for you. principal debt obligations being released through the third party respect of Nordic Aviation Capital, the world's largest raise issues which (in a future case) might be relevant Scheme under the Regulation if one or more creditors is domiciled under a Scheme because there is "sufficient nexus" In particular, the Irish court took a wide approach to the The use of creditors' schemes of arrangement is on the rise in Australia (as we discussed in our previous article - Update on Creditors Schemes of Arrangement in Australia). Companies experiencing trading difficulties, Companies under pressure from their creditors, The company draws up scheme proposals for its creditors, The company sends out the proposals to its creditors, together with notice of a creditors meeting, Meeting held where the company explains the proposals, Debts written down as per the scheme’s proposals, Large write downs of debts can be achieved, Once completed, the Scheme of Arrangement is legally binding on all creditors. generally only make an order if it will have "substantial guide to the subject matter. David Van Dessel is a partner in our restructuring services at Deloitte. Please see, Telecommunications, Media & Entertainment, Corporate Responsibility & Sustainability. – provided that there is a "sufficient nexus" plc [2019] IEHC 407, the court adopted a so-called A Scheme of Arrangement under Part 9 of the Companies Act 2014 debt. We not vote in favour. Deloitte Ireland LLP is the Ireland affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”). Who should consider a Scheme of Arrangement? It can also be used by companies to reorganise their group structure. means asking whether the Scheme would likely be effective in the Insights for the financial services and real estate industries in Ireland, Perspectives in public service innovation, An Article Titled Schemes of Arrangement already exists in Saved items. Please see www.deloitte.com/about to learn more about our global network of member firms. Notice of the arrangement and its approval publicised in 2 national newspapers; and; Application made to the High Court to approve the arrangement. foreign law (the governing law of the debt obligations and the law As seen above, a scheme of arrangement is a relatively straight forward process when compared to an examinership process. in Ireland. relevant foreign jurisdictions. A scheme of arrangement can be used as a mechanism to provide a broad range of restructuring solutions including debt for … Deloitte Ireland LLP is a limited liability partnership registered in Northern Ireland with registered number NC1499 and its registered office at 19 Bedford Street, Belfast BT2 7EJ, Northern Ireland. The approval of the Nordic Scheme demonstrates that Part 9 You’ll only need to do it once, and readership information is just for authors and is never sold to third parties. it was held that the Nordic Scheme would likely be effective in the A Scheme of Arrangement is a process used by a company in financial difficulty to reach a binding agreement with its creditors to pay back all, or part, of its debts over an agreed timeline. court gave important guidance on key matters which arise in Our turnaround experts can guide you through every step of the process to ensure that the Scheme of Arrangement has the best possible chance of success and that the process goes quickly, smoothly and cost effectively. The company, which is incorporated in Ireland but has a large presence in Houston, filed for a type of bankruptcy protection known as a "scheme of arrangement" before an Irish court on Monday. DTTL and Deloitte NSE LLP do not provide services to clients. (ii) An independent court officer is required to oversee the The company does not need to be insolvent in order to avail itself of a Part 9 Scheme. Schemes can provide a flexible and efficient tool for complex