Parallel proceedings, recognition and coordination across Ireland and the UK

How the firm helps

Senior-led Irish law advice on matters involving UK restructuring plans and schemes, English-law debt, and creditor strategies running across several jurisdictions. English law advice is also available directly, through Nexa Law.^* Contact the firm →

When Ireland is used in UK-linked restructurings

Irish processes are frequently relevant in UK-linked situations where groups have Irish holding, finance or operating entities, where EU recognition and execution is required, or where creditors are evaluating Irish court options as part of a broader enforcement strategy. Irish schemes of arrangement and examinership can be used as the main proceedings or as a recognition and implementation “bolt-on” alongside a wider restructuring.

Recognition and assistance: what is genuinely distinctive about Ireland–UK

Post-Brexit, Ireland retains a distinctive position in the UK recognition landscape. Ireland is the only EU member state able to access the UK Insolvency Act 1986 section 426 assistance mechanism, a tool that has been used in cross-border practice to support effectiveness of Irish insolvency outcomes in the UK. That can materially change the risk analysis where English-law contracts or creditors are central to the restructuring.

Practical consequences

• Broader options for coordinating outcomes where UK recognition pathways are otherwise constrained.
• Additional leverage in English-law governed structures where the “Rule in Gibbs” is a live concern.
• Greater certainty for stakeholders seeking a coordinated Ireland–UK implementation pathway.

English law advice, given directly

Kathlene Burke is a Partner at Nexa Law in England and Wales as well as the principal of Burke Legal. On an Ireland and UK matter that means the English law questions which usually determine the structure, the governing law of the debt, the risk analysis under the Rule in Gibbs, and how an Irish outcome will be received in England, can be advised on directly rather than only coordinated with separate English counsel. Her English practice covers liability management, forum strategy and UK restructuring tools.^*

Irish tools used in parallel or coordinated strategies

Part 9 schemes of arrangement

Irish Part 9 schemes are a flexible court-supervised mechanism to compromise liabilities with class voting thresholds, closely aligned to English scheme jurisprudence. They can be used to carry the restructuring itself, or as a targeted step where a wider plan is being driven elsewhere.

Examinership

Examinership provides court protection, a proposal drawn up by the examiner, and the ability to repudiate contracts, restructure operations and obtain protective court orders as part of a wider plan.

Winding-up related strategies

In creditor-driven contexts, Irish liquidation tools and court applications can form part of multi-forum enforcement or leverage strategies, particularly where there are Irish companies, assets, receivables or contracts.

How parallel proceedings are built

Whether an Ireland and UK strategy works usually turns less on which process is chosen than on the order in which steps are taken, the evidence prepared and the way the outcome is put into effect. Advice on a parallel structure addresses:

• Jurisdiction: whether the Irish court will take jurisdiction, and the evidence of sufficient connection required to establish it.
• Scope: which liabilities and creditors are compromised in the Irish process, and which are dealt with elsewhere.
• Recognition: what an English court or a counterparty will require before giving effect to the Irish outcome.
• Implementation: the releases, group contributions and remaining steps that turn a court order into a completed restructuring.
• Creditor engagement: a consistent explanation of the proposal in both jurisdictions.

In recent cross-border restructurings, Irish processes have been used in exactly this way to support a wider international plan, including cases where an Irish parent company was the vehicle through which liabilities across the group were compromised and released.

Representative cross-border experience

The practice draws on hands-on restructuring experience spanning the US, UK and Ireland, including complex in-court restructurings and recognition strategies. Examples discussed publicly in the market include restructurings where Irish schemes have been used to support broader plans and deliver EU-wide effect, and situations where Irish processes have been used to address governing law and recognition constraints in multi-forum structures.

Related pages

• Jurisdiction and cross-border strategy: forum, sequencing, recognition and enforcement in Ireland.
• Special situations: out-of-court solutions, schemes, examinership and wind-ups.
• Ireland and the US: coordination with Chapter 11 and EU implementation.
• The Hague Judgments Convention 2019: enforcement of Irish and EU judgments in the UK.

FAQs

Can Irish proceedings assist with EU-wide effect?

Often yes, depending on the structure and the relief sought. Part of Ireland’s attraction is that an Irish court decision can be used to support recognition and enforcement elsewhere in the EU.

Is this relevant if the debt is governed by English law?

It can be highly relevant. Governing law issues (including the Rule in Gibbs risk analysis) are often central to the choice of structure, and to whether the Irish process leads or supports.

Does the firm act directly for funds and creditors?

Yes, and also for international law firms requiring specialist Irish restructuring input on live UK-linked situations.