The PIA can restructure unsecured and secured debt, including mortgage debt, provided there is agreement by a majority of relevant creditor classes. This new legislative framework has shifted the balance in favour of borrowers, which is welcome and needed; and this needs to be factored-in to bank decision-making.
There will be an interplay with what can worked out bilaterally, and the alternatives that might arise in a PIA or in bankruptcy. We now enter a phase in which much of the uncertainty should begin to be resolved, with the insolvency legislation coming into force, and the shortened timeline for banks restoring the arrears situation to sustainability.