Restructuring Plans – Do's And Don'ts (Part 2): Lessons From 2024

In 2023 we published 10 do's and don'ts for restructuring plans, find our previous article available here. Following on from our initial article we have outlined five more do's and don'ts reflecting the development of restructuring plans in 2024.

Restructuring plans under Part 26A of the Companies Act 2006, a means to restructure the debts of a company, continued to be seen as one of the flagship restructuring processes within both the domestic and the cross-border restructuring markets. The fact that a restructuring plan can be used to cram down an entire dissenting class of creditors and so achieve solutions that cannot be achieved consensually or by other statutory restructuring processes makes it a powerful tool to achieve a comprehensive restructuring of a company's liabilities. However, because of the potentially extreme effect on stakeholders' rights a restructuring plan is a court-driven process. Indeed, an application for a restructuring plan takes the