Legal Lens Schemes, WHOA, and Chapter 11 alternatives abroad with a Clifford Chance panel
Apr 29, 2025
In this engaging discussion, Ilse van Gasteren, a partner in Amsterdam’s Restructuring Group, Maez-Riëlle Fink from New York, and London partner Melissa Coakley share their insights on UK Schemes and the Dutch WHOA. They delve into international restructuring alternatives to U.S. Chapter 11, highlighting the efficiencies and benefits of the Dutch BOA. The panel examines evolving liability management strategies and compares U.S. and international bankruptcy practices, shedding light on the flexibility in cross-border cases and the implications for directors and creditors.
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Global Restructuring Frameworks Evolving
- New restructuring frameworks inspired by Chapter 11 have emerged globally, including UK's super scheme and Dutch WHOA.
- These provide options like moratoriums and cramdowns, enhancing cross-border restructuring possibilities.
LMEs and Director Liability Constraints
- Loan management exchanges (LMEs) are growing in Europe but less used in the UK due to court-based process advantages.
- UK and Dutch director liability concerns limit aggressive out-of-court transactions, influencing restructuring strategies.
Manage Without Automatic Stay
- UK schemes and RPs lack automatic stay but are fast, usually under four months.
- Use traditional standstills to manage creditor actions during restructuring and consider moratoriums in insolvency.