A meeting of one? Class meetings and restructuring plans (Argo Blockchain Plc, Re)
Restructuring & Insolvency analysis: The court held that a restructuring plan under Part 26A of the Companies Act 2006 (CA 2006), proposed by Argo Blockchain Plc (‘the Plan Company’ and ‘the Plan’), should be sanctioned. In addition to the fairness of the Plan, the judgment discusses the role of an independent advocate to protect retail creditors, the validity of class meetings attended by only one person, and the effect of a low turnout at class meetings generally. On these questions, it was held that (1) it was sensible to allow the independent advocate to criticise the fairness of a plan, (2) a valid class meeting required the attendance of at least two persons (except where the class only contained one creditor), and (3) a low turnout at the meeting does not preclude the relevant class from being treated as an assenting class, but it can in appropriate circumstances mean that the court should apply the test in CA 2006, s 901G rather than the ‘light touch’ rationality test usually adopted in respect of an assenting class. Written by Nora Wannagat, barrister at Tanfield Chambers.