Some news and views from UK academia and practice on the law, policy and practice of insolvency
Monday, 28 March 2011
Schemes of Arrangement and Insolvency - Re Uniq Plc  EWHC 749 (Ch) (25 March 2011)
Mr Justice David Richards has handed down his decision in Re Uniq Plc  EWHC 749 (Ch) (25 March 2011) whilst sitting at the Royal Courts of Justice (pictured). The decision is particularly noteworthy as it contains a discussion of schemes of arrangement within an insolvency context. As the learned judge notes: "The scheme, and the restructuring of which it forms an integral part, are both complex. Their purpose is to provide a solution to the financial problems posed by the deficit on Uniq's pension scheme. Without a solution it seems inevitable that Uniq and its main subsidiary would become insolvent within a year." In relation to the use of schemes within an insolvency context Richards, J notes: "The proposal is further evidence of the utility of schemes of arrangement as a means of achieving a wide range of purposes including, as in this case, securing the long-term future of a company or group which would otherwise in due course face insolvency."