Is a scheme of arrangement a “Chapter 11” in disguise?

Timothy Sackar, Gregory Pesce, Jillian McAleese and Marcus Carlei of White & Case examine the key structural differences between Australian schemes of arrangement and US Chapter 11 proceedings, arguing that while both facilitate court-supervised creditor compromises, schemes remain more limited, creditor-focused and vulnerable to holdout classes due to the absence of features such as automatic stays, contract rejection powers and cross-class cramdowns, making Chapter 11 the more effective tool for complex or cross-border restructurings.

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