CLLS & LS Response to Consultation on the Practice Statement for schemes of arrangement under Part 26 and restructuring plans under Part 26A of the Companies Act 2006

We support the response of the City of London Law Society Insolvency Committee to the consultation. Similarly to the Insolvency Committee, we have concerns regarding the requirement in paragraph 5 of the draft Practice Statement for a claim form to be issued on a named basis before the date of any Court hearings is arranged.

In our view the Court should continue to permit the existing informal process. To do otherwise would significantly disrupt what we consider to be an efficient and well-established practice that ensures that takeovers by way of scheme can be conducted in an orderly manner.