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The Cost of Restructuring: Consent Fees, Advisor Fees and Backstop Fees Data for Schemes and Part 26A Collated Since 2020

Legal Analyst: Shan Qureshi Reorg has compiled data on the fees paid by restructuring debtors using Schemes of Arrangement, or Schemes, and Part 26A Restructuring Plans, or Part 26A, over the last four years. Full details of the type of fees incurred can be found in the below tables. Key TakeawaysSchemes Lockup Fees and Consent Fees often feature and are rarely disputed. They range between 0.25% and 3%, however the majority are charged at below 1% of debt locked up. Fees of Advisors to relevant creditors and the debtor almost always are paid by the debtor and the total amount paid is rarely disclosed. Additional AHG Working Fees also feature and these vary in range from 0.05% up to 1.75%, where disclosed. These fees are sometimes expressed as a fixed percentage of debt or a fixed or success fee. Backstop Fees are becoming more prevalent and they seem to vary from 0.25% to 5%. Part 26A Generally, Part 26A are much less likely to include fees than Schemes, however as a general trend, fees are becoming more prevalent. Lockup Fees and Consent Fees are becoming more common. They began to appear in early 2023 and are of a similar quantum[...]