Ireland–US restructuring coordination and EU implementation strategies

When to involve Irish counsel

Irish entities, EU assets, English-law or New York-law debt, or restructuring plans requiring EU recognition or third-party release effectiveness. English law advice is also available directly, through Nexa Law.^* Contact the firm →

Using Ireland alongside Chapter 11

Irish restructuring processes are increasingly deployed in tandem with US Chapter 11 proceedings where multinational groups require coordinated recognition and enforcement across jurisdictions. Ireland can be used as a primary restructuring venue or as an ancillary or implementation forum to support a broader US-led transaction.

Irish schemes of arrangement, examinership and related court processes can be structured to align with Chapter 11 timelines and creditor engagement processes, providing a mechanism to implement or recognise restructuring outcomes across the EU and beyond.

Why Ireland is strategically used in US-linked restructurings

• EU recognition and implementation of restructuring outcomes
• Compromise of New York or English law-governed liabilities
• Third-party releases and group-wide liability management
• Single-point-of-entry structures using Irish entities
• Coordination with Chapter 11 and Chapter 15 proceedings

Ireland’s common law system, sophisticated commercial court and flexible restructuring toolkit make it a practical coordination jurisdiction for complex capital structures spanning the US, UK and EU.

Scheme-based restructurings of US law governed debt

Recent international restructurings have highlighted the growing use of scheme-based processes to implement global liability management transactions involving US law-governed debt, including through a single point of entry vehicle incorporated in a scheme jurisdiction. That approach has been used to compromise New York law debt without a filing in every jurisdiction in which the group operates.

Ireland offers a comparable scheme of arrangement framework capable of delivering similar outcomes, including:

• binding compromise of financial indebtedness
• cross-class creditor structures
• use of newly incorporated scheme vehicles
• group-wide release mechanics
• recognition through Chapter 15 where required

Irish courts have demonstrated a pragmatic and commercially focused approach to schemes and related restructuring tools, including acceptance of contribution and indemnity structures to facilitate group-wide compromise and release of liabilities where supported by appropriate evidence.

Third-party releases and single-point-of-entry structures

Irish schemes of arrangement permit the compromise and release of liabilities on a flexible basis and can be structured to deliver third-party releases where there is sufficient connection and appropriate consideration. This enables coordinated restructuring outcomes across complex multinational groups.

In appropriate cases, an Irish incorporated entity may be used as a single point of entry restructuring vehicle to implement a compromise of wider group liabilities, supported by contribution or assumption mechanics. This approach can simplify execution and reduce the need for parallel filings across multiple jurisdictions.

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. Where a US-led restructuring involves English law governed debt, or where the English position affects the choice of structure, that advice can be given directly rather than only coordinated with separate English counsel.^*

How Ireland fits into US-led restructurings

• EU recognition and enforcement of restructuring outcomes
• Parallel scheme or examinership proceedings
• Chapter 15 recognition of Irish processes
• Creditor engagement and voting coordination
• Implementation of releases and liability compromises

The appropriate structure will depend on the governing law of the debt, location of entities and assets, creditor profile and overall transaction objectives. Early assessment of Irish options can materially expand the range of achievable restructuring outcomes.

Representative cross-border experience

The practice draws on hands-on restructuring experience across the United States, the United Kingdom and Ireland, including in-court restructurings, recognition proceedings and the coordination of parallel processes. That experience covers both sides of the Atlantic: Chapter 11 practice in New York and Irish schemes, examinership and recognition work in Dublin.

FAQs

When should Irish counsel be brought in?

Usually earlier than expected. Where the group has Irish entities or EU assets, or where the plan depends on EU recognition, the Irish analysis shapes the structure rather than following it. Late instruction tends to narrow the options.

Can an Irish process be recognised in the United States?

In appropriate cases an Irish process may be presented for recognition under Chapter 15. Whether a given process qualifies, and whether recognition is sought as a main or non-main proceeding, depends on the nature of the process and the debtor's connections to Ireland.

Does the firm act directly for funds and creditors?

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

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 UK: parallel proceedings, recognition and coordination.
• The Hague Judgments Convention 2019: enforcement of Irish and EU judgments in the UK.