IBR meaning

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...

Initial steps Whether you are acting for the debtor, creditor, potential purchaser or a shareholder—and regardless of the jurisdiction in which the restructuring occurs (see Practice Note: Benefits of various jurisdictions)—the first priority is to gather all relevant security documents and carry out due diligence on the company or the wider group of companies... On larger restructurings with multiple parties and advisers, it is usual for one party (often the senior lenders) to manage the deal contact list, and you should promptly add your team’s details (phone, email, etc) so early communications can get underway... You will also be able to identify which firms represent each party, which can be informative—for example, if the bondholders have formed a committee and instructed lawyers, negotiations may become drawn out... As the objective is to restructure the company, understanding the live-side business is crucial when putting together your internal team. For instance, if you are dealing with a telecoms company, it is helpful to have telecoms specialists available—particularly when...

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...