- Jersey Finance
- |26/8/22
Carey Olsen worked with an ad hoc committee of creditors involved in the restructuring of an international casual dining group where the creditors wanted to: (a) take control of the group as it exited from a restructuring plan implemented under Part 26A of the UK Companies Act 2006; (b) reduce the group’s overall indebtedness; and (c) provide a new working capital loan facility.
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The Client
An ad hoc committee of creditors involved in the restructuring of an international casual dining group.
The Challenge
The creditors wanted to: (a) take control of the group as it exited from a restructuring plan implemented under Part 26A of the UK Companies Act 2006; (b) reduce the group’s overall indebtedness; and (c) provide a new working capital loan facility.
Solution
Carey Olsen advised in respect of the establishment of a Jersey holding structure through which the creditors could take control. They also provided advice which included: an analysis of Jersey rules in respect of prospectuses/offering documents; advising on recognition of the restructuring plan in Jersey; consideration of various orphan structures; advising on bespoke constitutional documents; reviewing and inputting into the English law plan documents; and, advising on the reconstitution of the group’s existing indebtedness and the provision of new money facilities.
Results
The transaction reduced the group’s indebtedness by c.£1 billion. This is one of many similar restructurings carried out by Carey Olsen in conjunction with onshore counsel, reflecting a continuing trend that started before the Covid-19 pandemic. The choice of Jersey for incorporation of the new holding company reflects the continued usefulness of Jersey’s flexible corporate law and tax neutral environment in sectors outside traditional real estate/PE acquisition structures, which remain strong notwithstanding Covid-19.