Part 26A restructuring plans—eligibility criteria

Copyright © 2025 LexisNexis
Published by a LexisNexis Restructuring & Insolvency expert
Practice notes

Part 26A restructuring plans—eligibility criteria

Copyright © 2025 LexisNexis

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes
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This Practice Note looks at the eligibility criteria for restructuring plans under Part 26A of the Companies Act 2006 (CA 2006), including eligible types of company, the application to foreign companies and other entities, the requirements of Condition A (the financial condition) and Condition B (the need for a compromise or arrangement), and who can apply.

Types of company

The availability of a restructuring plan (RP) is not dependent on the company’s size or turnover; this is in line with the view expressed in the government’s response (August 2018) to the earlier consultation that the RP should be available to all companies—a smaller company may better effect a rescue via an RP than by using a company voluntary arrangement (CVA).

Our Market Trends report (see News Analysis:Market Insights Trend Report—trends in Part 26A restructuring plans in 2024) also shows that RPs can be used for companies across a wide range of industries. However:

  1. •

    it is expected that regulations will be made to exclude ‘insurers and credit institutions’ from its ambit—the Secretary of State may introduce regulations

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Jurisdiction(s):
United Kingdom

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