Schemes of arrangement allow for a financial distressed company to restructure its debts and implement a turnaround. The company may have to seek for a restraining order to stay legal proceedings. We have structured schemes of arrangement for debtor companies, worked with financial advisers in devising and drafting the explanatory statement and scheme document, as well as to apply for and resist restraining orders. We advise on the drafting and restructuring of the financing and security documentation.
We are also experienced in combining restructuring options, and implementing the the appropriate restructuring strategy. Options would include voluntary out-of-court processes, capital reductions, transfers of assets and liabilities, and sale and issuance of shares.
A distressed company would also have the ability to apply the corporate rescue mechanisms. The new tools of corporate voluntary arrangement and judicial management offer moratorium protection and require certain creditor voting thresholds to be met. We have advised both debtors and creditors on the impact and implementation of the corporate rescue mechanism.