Adler appeal—restructuring plan sanction order overturned (Re AGPS Bondco plc)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Restructuring & Insolvency analysis: this case considers the successful appeal to a sanctioned restructuring plan. A restructuring plan was proposed by a German property group to permit its controlled wind down (the ‘Plan’). The sanction hearing involved the first fully contested valuation challenge under the plan jurisdiction and required the exercise of the cross-class cram down power afforded by Part 26A of the Companies Act 2006 (CA 2006). The Court of Appeal overturned the sanction of the Plan, a decision primarily based on the failure of the Plan to accord with the pari passu principle of distribution that would have been applicable in the relevant alternative to the Plan of a formal insolvency. Written by Imogen Beltrami, barrister at South Square Chambers.