What is a lock-up arrangement?

A lock-up agreement is a contractual provision preventing insiders of a company from selling their shares for a specified period of time. They are commonly used as part of the initial public offering (IPO) process.

What is a UK scheme of arrangement?

A UK scheme of arrangement is a court-approved mechanism under the UK Companies Act 2006 which permits a company to enter into a compromise or arrangement with its shareholders and/or its creditors or any class of the company, subject to the receipt of requisite shareholder approvals and court sanction.

How was the Prada lock-up agreement different from that of other markets such as the US?

How was the Prada lockup agreement different from that of other markets such as the US? Value Creation 7 Prada’s agreement was different from others like that of the US in that for them they used the validation of the certificates while for the US it prevented insiders from selling their shares for 180 days.

Where can I get a lock up agreement?

In follow-on offerings, which often are undertaken in an abbreviated time period, lock-up agreements will usually only be obtained from the issuer, directors, and officers.

What is a dry up agreement?

Dry-Up Shares means any FLCC Shares that were not historically used to irrigate the Land. Seller and Buyer shall work together to resolve Buyer’s concerns regarding the Rejected Dry-Up Shares to Buyer’s satisfaction on or before Closing, which efforts may include, among other things, obtaining new dry-up covenants.

What is a lock-up fee?

The Lock-Up Fee shall be paid by wire transfer of immediately available funds to an account designated by Holder on the date this Agreement is executed, and shall be deemed fully earned upon receipt. …

How long is a lock-up period?

180 days
How Long is a Lock-up Period? The lock-up period is usually 90–180 days, depending on the company. Although lockups used to be fairly simple – typically lasting 180 days – they are gradually becoming more complex. Investors and employees usually want lockups that are shorter so that they can cash out earlier.

What is lock period?

Meaning of lock in period Lock in period or lock up period refers to that period for which investments cannot be sold or redeemed. Lock in periods are commonly used for hedge funds, IPOs of private equity, start-ups and few mutual funds. On the expiry of the lock in period, one must not withdraw the funds immediately.

What can a scheme of arrangement be used for?

A scheme of arrangement is an agreement between the company and its creditors and/or members (or a certain class or classes of them) about a specified issue. It is not actually an insolvency procedure and can be used by both solvent and insolvent companies to agree any issue or matter with its creditors and/or members.

How long does it take to set up a scheme of arrangement?

A straightforward scheme of arrangement can be completed within two months, but others will take longer. Court dates should be booked as soon as possible and can be booked confidentially but your legal advisors will be able to help with this. The process for putting a scheme of arrangement in place is set out in the Companies Act 2006.

How are secured creditors bound by a scheme of arrangement?

This means that secured creditors are also bound by the scheme, unlike a company voluntary arrangement (CVA) situation (see Corporate insolvency: Company Voluntary Arrangements (CVAs) explained ), with the result that debts owed to secured creditors may be cancelled or reduced without their unanimous consent.

Can a scheme of arrangement be used for insolvency?

Although a scheme of arrangement is not actually an insolvency procedure, it can be used to rescue an insolvent company and/or its business. Here, we explain the procedure and practical issues to be considered. What is a scheme of arrangement? Does a scheme of arrangement result in a moratorium?

What is a lock-up arrangement? A lock-up agreement is a contractual provision preventing insiders of a company from selling their shares for a specified period of time. They are commonly used as part of the initial public offering (IPO) process. What is a UK scheme of arrangement? A UK scheme of arrangement is a court-approved…