Explanatory statement for a restructuring plan

Published by a UU��ֱ�� Restructuring & Insolvency expert

Precedents

Explanatory statement for a restructuring plan

Published by a UU��ֱ�� Restructuring & Insolvency expert

Precedents

This document is important and requires your immediate attention

If you are in any doubt as to any aspect of this proposal or as to the action you should take, you should consult your professional adviser without delay.

Further copies of this document and the enclosed voting forms can be obtained from the address Listed on page [insert number]. [they may also be downloaded and printed from the website [insert website address]].

Proposal in relation to restructuring plan

Pursuant to Part 26A of the Companies Act 2006

Between

[Insert Company name]

And its

creditors/members

(as defined in the restructuring plan)

The meeting[s] of Creditors/Members to consider the restructuring plan (the Meeting[s]') will be held [[at insert address] OR virtually by telephone/webinar OR on [insert date] . The meeting[s] will commence at [insert time] London time.

Notice of the meeting[s] is set out in Appendix 5 to this document.

The action required to be taken by Creditors/Members is set out on page [insert number]. Whether or not Creditors/Members intend to be present at the meeting[s],

Jurisdiction(s):

United Kingdom

Key definition:

Insolvency definition

What does Insolvency mean?

This can be defined by two alternative tests (Insolvency Act 1986, s 123):

• cash flow test: a company is solvent if it can pay its debts as they fall due, no matter what the state of its balance sheet (Re Patrick & Lyon Ltd [1933] Ch 786);

• balance sheet test: a company which can pay its debts as they fall due may be insolvent if, according to its balance sheet, liabilities (including contingent liabilities) exceed assets.

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