Haircut meaning

Re Thames Water Utilities Holdings Ltd [2025] EWHC 338 (Ch) What are the practical implications of this case? Under the plan, TWUL will receive up to £3bn in liquidity from a cohort of its current senior lenders (‘the Class A Creditors’), whilst it continues to take steps to implement a stable, long‑term restructuring plan. As Leech J observed, it seems improbable that TWUL will carry the entire debt burden over the long term—he considered it likely that the Class A Creditors will accept a ‘substantial haircut’ to deliver the long‑term restructuring. Liquidity from existing senior creditors will underpin a stable, long‑term restructuring plan in full. Leech J’s judgment is dense with familiar yet critical practical guidance, emphasising: the need to file expert evidence precisely directed at the issues under consideration; the pitfalls where factual witnesses are unfamiliar with the documents on which they give evidence; the risks of advancing late submissions without the Court’s invitation. He also records notable legal...

Domestic CBI publishes Insurance Quarterly Newsletter—Q1 2025 On 25 March 2025, the Central Bank of Ireland (CBI) issued its Insurance Quarterly Newsletter for Q1 2025 (the newsletter), spotlighting updates, developments and notable forthcoming dates/events for the (re)insurance sector. The newsletter covers a range of matters, including: the release of the CBI’s Regulatory & Supervisory Outlook report the CBI’s refreshed approach to supervision a note that the CBI’s dedicated Fitness and Probity Unit was set up in December 2024 the issue of the CBI’s annual report on demographics of the financial sector The newsletter appears alongside the CBI’s launch of a modernised Consumer Protection Code (the Code) following a comprehensive review of the existing regime (the Consumer Protection Code 2012) and engagement with consumer and industry stakeholders. The Code’s provisions, which take effect from March 2026 after a twelve-month implementation period, set out the business standards that (re)insurers and (re)insurance undertakings must observe when interacting with consumers. CBI publishes insurance...

This glossary sets out numerous expressions frequently encountered in the restructuring arena. Words appearing in the definitions in bold are explained in other entries in this glossary. For further banking terminology, see the principal Banking & Finance Glossary. Restructuring glossary—A Acceleration: Acceleration means the agent, acting on directions from the majority lenders after an event of default, takes formal action, for example calling for early repayment of the facility. Ad-hoc committee: A temporary creditors’ group (often contrasted with a formal committee) that lacks any entitlement to official recognition. Administration: A process under the IA 1986 in which a financially distressed company is operated by an administrator as a going concern before longer-term outcomes, such as break-up and sale, are pursued. Administrator: An Insolvency Practitioner named by the court, a Qualifying floating charge holder, the directors or the company, to take control and fulfil one of the purposes in IA 1986, Sch B1. Administrative receivership: Arises when a company breaches the terms of...

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...

Banking & Finance glossary A Auditing and Accounting Organisation for Islamic Financial Institutions (AAOIFI) The foremost Islamic, international, autonomous, independent, not-for-profit corporate body that develops and issues accounting, auditing, governance, ethics and Shari’ah benchmarks and standards for Islamic Financial Institutions (IFIs) and the wider Islamic finance sector. Founded in Bahrain in 1991, it is backed by a number of institutional members across more than 45 countries, including central banks and regulatory authorities, financial institutions, accounting and auditing practices, and legal firms. Its pronouncements are currently applied by leading Islamic financial institutions across the world and have advanced a progressive and gradual harmonisation of global Islamic finance practice. It also delivers professional qualification programmes—notably Certified Islamic Professional Accountant (CIPA), Certified Shari’ah Adviser and Auditor (CSAA), and the corporate compliance programme—in efforts to strengthen the industry’s human capital and governance frameworks. For further details, see Practice Note: Key participants in the Islamic finance industry—Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). Acceleration Acceleration is the formal action...