This client briefing provides a general overview of schemes of
arrangement for Jersey companies under the Companies (Jersey) Law
1991 (the "Companies Law"). A scheme of
arrangement can involve almost any kind of corporate
reorganisation, merger, acquisition or restructuring so long as the
appropriate approvals and court sanction are obtained. In the
context of restructurings, there is limited precedent in Jersey,
although Jersey schemes of arrangement have been used as part of
the Drax and Telewest restructurings.
What is a Scheme?
Under Article 125 of the Companies Law, the Royal Court of
Jersey may sanction a compromise or arrangement (a
"Scheme") between a company and its
creditors or shareholders (or a class of either of them). The court
may, on application of the company (or its creditor, shareholder,
or liquidator if it is being wound up), call a meeting at which the
Scheme will need to be agreed to by a majority in number of the
creditors or shareholders
