- Co-obligor structure deemed ‘good forum shopping’ as court sanctions restructuring plan (Re gategroup Guarantee)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- ‘Good forum shopping’
- International effectiveness and legal effect of a restructuring plan
- Case details
Restructuring & Insolvency analysis: This judgment relates to the sanction hearing for a restructuring plan under section 901C of the Companies Act 2006 for gategroup Guarantee Ltd. In sanctioning the plan, Mr Justice Zacaroli held that there was no blot or defect, despite the use of an artificial co-obligor structure to access the court’s jurisdiction and that the plan company had engaged in ‘good forum shopping’. Furthermore, the shift of the Luxco issuer’s centre of main interests (COMI) to England was deemed effective and was a key element of the evidence that the restructuring plan would likely be recognised in Switzerland and Luxembourg. The issue of recognition in Switzerland, however, was not straightforward, and prompted a technical legal analysis of the way in which a restructuring plan operates to vary the rights of creditors. Written by Riccardo Alonzi, associate at Skadden, Arps, Slate, Meagher & Flom (UK) LLP.
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