Wall Street Journal Interviews Steve Golden on U.K. Restructuring as Chapter 11 Alternative

Steve Golden recently spoke with the Wall Street Journal about the emergence in popularity of U.S.-based and Nasdaq-listed companies opting to restructure their debt in the U.K. as an alternative to filing Chapter 11 in the U.S. On Friday, New Fortress Energy, a Nasdaq-listed energy infrastructure company, filed for Chapter 15 bankruptcy in New York, seeking recognition of their restructuring underway in London. Businesses such as New Fortress Energy, as well as Fossil Group and Argo Blockchain, both of which similarly overhauled their debt in the U.K. despite their strong U.S. presence, are relying on mechanisms under the U.K.’s Companies Act known as Part 26A. Steve explained to WSJ, “when a company goes into Chapter 11, the whole company goes into Chapter 11, and all of its debts are subject to the proceeding.” Referred to as “the global rival to Chapter 11,” Part 26A provides a faster and cheaper alternative to traditional U.S. bankruptcy filings given its more lenient voting thresholds and the capability for companies to revamp specific debt while preserving their capital structure and equity value on the Nasdaq. “Unless and until U.S. law catches up,” said Steve, “this international two-step could be an option.”

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