Recognition of English solvent Schemes of Arrangement in Germany, Arthur Swierczok

Abstract (click to view)

English solvent Schemes of Arrangement under the Part 26 of the Companies Act 2006 have proved to be a valid restructuring device for non-English companies. Since 2010 for example four German companies, Tele Columbus GmbH, Rodenstock GmbH, Primacom GmbH and Monier Group Services GmbH, which were all financially distressed but solvent, have restructured themselves via an English solvent Scheme of Arrangement. However, from a legal perspective, what is very remarkable in all of these three cases is the fact that the English courts did not demand a shift of the companiesʼ seat or Centre of Main Interest for the application of the Scheme of Arrangement. This leads to significant and contentious recognition questions and problems in the country of the SoA company’s origin, which this paper – particularly for Germany – will address.