Restructuring Plans

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Spurred on by the coronavirus (COVID-19) pandemic, the government pushed through the Corporate Insolvency and Governance Act 2020 (CIGA 2020).

Among the reforms, CIGA 2020, s 7 and Sch 9 introduced a Part 26A of the Companies Act 2006 (CA 2006)—Arrangements and Reconstructions for Companies in Financial Difficulty (an RP). In June 2022, the Government’s review concluded that the RP has largely met its objectives.

On 23 January 2024, the Court of Appeal handed down its decision in Re AGPS BondCo plc; sub nom Strategic Value Capital Solutions Master Fund LP v AGPS BondCo plc, setting aside the previous sanction order for the restructuring plan. Snowden LJ delivered the leading judgment (with which Nugee LJ and Sir Nicholas Patten agreed) and held that the RP was unfair because it was contrary to the pari passu principle. Snowden LJ gives guidance on many aspects of RPs including (among other things): time-tabling, classes, fair allocation of the restructuring surplus, how cross class cramdown (CCCD) should be applied and the horizontal and vertical comparators. The court also cautioned that ED&F Man is not authority for

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Latest Restructuring & Insolvency News

Restructuring and Insolvency weekly highlights–19 June 2025

This week's edition of Restructuring and Insolvency weekly highlights includes: the publication by the Department for Business and Trade of its second annual progress report on the implementation of the Economic Crime and Corporate Transparency Act 2023, the endorsement by the Council of the EU of the Directive aimed at harmonising key aspects of insolvency law across member states, analysis of a decision that parallel Australian proceedings did not justify a stay of disqualification proceedings in this jurisdiction (Secretary of State for Business and Trade v Greensill), plus a round-up of other news and cases for restructuring and insolvency professionals.

Parallel Australian proceedings do not justify stay of disqualification proceedings in England (Secretary of State for Business and Trade v Greensill)

Dispute Resolution analysis: This case concerned an application for a stay of proceedings in the High Court for the disqualification of a director, Mr. Greensill. The stay was sought by Mr. Greensill on the basis that there were parallel proceedings pursued in private law in the Federal Court of Australia. The stay was refused and the court reiterated that, where a case management stay is sought on the grounds of parallel proceedings elsewhere, it is to be expected that it will only be in rare and compelling circumstances that, as a matter of fact, the relevant test has been met. The judge, looking at matter in the round, held that the relief sought by Mr. Greensill would be likely to lead to significant delay and complication in the final determination of all the disqualification issues against him, with insufficient material countervailing case management benefits. Accordingly, the application for a stay was dismissed. Written by Georgia Whiting, legal counsel at Ardmore.

Latest edition of Corporate Rescue and Insolvency available (June 2025 edition)

Restructuring & Insolvency analysis: The latest edition of Corporate Rescue and Insolvency (June 2025) is now available in Lexis+® UK (subscription required). This edition features, among others, articles exploring Part 26A restructuring plans and the LexisNexis’ Part 26A Trend Report, third party releases, and using Chapter 11 to restructure airlines.

Insolvency Service reports suspended sentence for construction director over accounting records failure

The Insolvency Service has reported that Mario Huiu, former director of Incentive Services Limited, has received a four-month prison sentence, suspended for 12 months, after failing to maintain proper accounting records. Huiu neglected to explain £498,480 in transfers from company accounts between May and June 2020, verify £261,960 in cash receipts, or account for the company's failure with £162,482 in debts. The order was made under the Companies Act 2006 (CA 2006) and Insolvency Act 1986 (IA 1986). Huiu had previously been disqualified as a company director for six years in November 2021 following initial investigations into his conduct at the company.

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