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Administration Notes

Law Notes > Debt Restructuring Notes

This is an extract of our Administration document, which we sell as part of our Debt Restructuring Notes collection written by the top tier of King's College London students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Debt Restructuring Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:

Recall that the tragedy of the anti-commons = need for collectivisation for privatisation.
● Collectivisation = Administration + Chapter 11 USC
● Privatisation = Pre-packs + Schemes of arrangement
The procedures available under English law:
● Compulsory winding up by court order
● Creditors' voluntary winding up
● Administration (whether by court order or taking place out-of-court)
● Company Voluntary Arrangements ("CVAs")
● Schemes of Arrangement
● Bankruptcy
McCarthy & Stone:
● McCarthy & Stone's capital structure:

○ ILNH = Holders of the investor loan notes
● Scheme of arrangement + Pre-pack: ○ Scheme of arrangement involving only the senior creditors. Senior creditors received equity and new debt in HoldCo.
○ Pre-packaged administration:
■ Transfer of all assets to the new companies in consideration for the assumption of trading liabilities by the new companies.
■ Discharge of part of the senior debt by way of issuing new debt and equity in the new companies.
■ Release of all security and guarantees over the transferred assets.
■ This effectively leaves behind out-of-money creditors in the original companies. The original companies are now essentially shells devoid of assets.
Bluebrook:
● Bluebrook's capital structure: ● Three identical schemes of arrangement:

○ Three identical schemes for Bluebrook, IMO, and Spirecove.
■ The scheme creditors receive equity in HoldCo + new debt issued by
MidCo.
■ The companies in red were put into administration.
■ This were pre-packaged administrations: The transfer of assets took place immediately upon the appointment of the administrators.
Hellas II:
● Hellas II's capital structure:

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