Court Sanctions Part 26A Restructuring Plan

The court considered whether it could make an order sanctioning a Part 26A restructuring plan ("Plan") where the company was incorporated in England to rely on the English court's jurisdiction to sanction a Plan.

The court had previously held that it had jurisdiction over the company, as proceedings under Part 26A fall outside the scope of the Lugano Convention. The court now considered whether:

1. The provisions of the statute have been complied with
2. Each class was fairly represented by the meeting and whether the majority was coercing the minority in order to promote interests which are adverse to the class that they purported to represent
3. The scheme or plan was a fair one which a creditor could reasonably approve; and