Definitisation/definitive notes meaning

This glossary sets out numerous expressions regularly encountered in the restructuring & insolvency sphere. Words shown in bold within definitions are themselves explained in other entries in this glossary as well. A Article X The MLIJ contains a single provision named Article X, aimed at jurisdictions that have already implemented the MLCBI, like England, or are weighing its adoption. Article X states: ‘Not withstanding any prior interpretation to the contrary, the relief available under [insert a cross-reference to the legislation of this State enacting Article 21 of the UNCITRAL Model Law on Cross-Border Insolvency] includes recognition and enforcement of a judgment’ (see Practice Note: UNCITRAL model law on recognition and enforcement of insolvency-related judgments (MLIJ): Article X). Asset-backed security (ABS) A form of security anchored by asset pools, for example loans, leases, and credit card receivables. Assimilated law From 1 January 2024, ‘retained law’ has been retitled ‘assimilated law’. The body of domestic law originally arising from EU obligations, created by the European...

The voting requirement As set out in Practice Note: Schemes of arrangement—process and statutory framework, section 899(1) of the Companies Act 2006 provides that the court may sanction a scheme only where, at each scheme meeting, approval is obtained by: a majority in number (the numerosity test); and creditors representing 75% in value voting in person or by proxy. From 26 June 2020, if a scheme is proposed within 12 weeks of a moratorium under the Corporate Insolvency and Governance Act 2020, those owed moratorium debts and any pre‑moratorium debts for which the company did not benefit from a payment holiday during the moratorium effectively possess a veto, as the court may not sanction a scheme that makes provision in respect of such creditors without their consent (see Practice Note: Moratorium). For guidance on the methodology used to determine the correct composition of creditor classes, see Practice Note: Schemes of arrangement and restructuring plans—class issues...