Court of Appeal Overturns Restructuring Plan Sanction and Looks at Cram Down

The Court of Appeal’s decision will be particularly significant for companies, creditors and their advisers faced with putting together and seeking support for restructuring plans (“RPs”) (under the Part 26A court procedure introduced into the Companies Act 2006 by the Corporate Insolvency and Governance Act 2020), especially where an attempt is made to cram down a class of dissenting creditors – the so-called “cross class cram down” feature of Part 26 – as part of the sanctioning of the RP by the court. It marks the first time that the sanctioning of a RP has been appealed (and successfully) and provides detailed and important commentary from a notable senior Chancery judge on how the court’s discretion in cram down cases should be…