Part 26A restructuring plans and leases

Restructuring plans, introduced under the Corporate Insolvency and Governance Act 2020 as a new Part 26A to the Companies Act 2006 (CA 2006), allow companies which are struggling financially to implement a compromise or arrangement with their creditors, their members or both which will ‘eliminate, reduce, prevent or mitigate the adverse effect [of the financial difficulties] on a company’s ability to carry on business as a going concern’.

Restructuring plans can and have been used to compromise landlords’ claims and other lease liabilities. In practice, they have become an important restructuring tool in a retail and property context because, where the statutory conditions are met, they can impose a plan on dissenting classes through cross-class cram down (CCCD).

The documents in this subtopic explain the restructuring plan framework as it applies to leasehold liabilities and highlight the practical issues for landlords affected by a proposed plan.