The decision will provide greater clarity for companies and insolvency practitioners seeking to implement restructuring plans under Part 26A of the Companies Act 2006.
A restructuring plan is a new form of restructuring tool introduced in June 2020 by the introduction into law of the Corporate Insolvency and Governance Act. This is only the third time that a restructuring plan has been sanctioned in the UK, and it is the first time that the so-called ‘cross-class cram down’ mechanism has been used.
This case sets a significant precedent for the future use of restructuring plans. Whilst further test cases will inevitably be required, the case shows that the courts are willing to give effect to the new features of the Part 26A “super s…
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