Exit Consents in Restructurings – Still a Viable Option?

The decision of the English High Court in the Assénagon case created significant uncertainty about the legality of coercive exit consents (‘covenant strips’) under English law. It was expected that further guidance would be provided by the Court of Appeal, but the appeal was withdrawn before judgment was given. As a result, the High Court decision remains authoritative. This memo considers the implications of the decision for prior and future restructurings implemented by way of an exit consent.