At the beginning of 2025 we shared our predictions on what we expected to see in the R&I market over the course of the year. How did we do? … Continue Reading
Despite meeting statutory jurisdictional requirements under Part 26A of the Companies Act 2006, the High Court declined to exercise its discretion in favour of sanctioning Waldorf Production UK Plc’s restructuring plan in August 2025due to concerns about fair allocation of value and lack of meaningful engagement with unsecured creditors. Waldorf then sought and was granted … Continue Reading
On insolvency, the pari passu principle applies, meaning unsecured creditors rank equally in the distribution of available assets. That principle helps explain why a creditor who has obtained a judgment debt but has not completed enforcement (for instance by obtaining a final charging order) will usually be barred from doing so once insolvency intervenes. A … Continue Reading
For reasons explained in this blog, they did not in the case of Conway and others v Plass and others [2025] EWHC 2625 (Ch) but there could be situations where it might. In Conway and others v Plass and others, the High Court has provided guidance on when contract liabilities incurred by administrators will be … Continue Reading
In Re Petrofac Ltd [2025] EWHC 2887 (Ch), the English High Court made an administration order in relation to a Jersey-incorporated company even though its registered office was not in England which is the starting point for determining COMI and therefore the Court’s jurisdiction to make such an order. Background Petrofac Limited (the Company) is the … Continue Reading
In a first, the Pensions Regulator (TPR) has exercised its anti-avoidance powers under section 47 of the Pensions Act 2004 (PA04). While it has issued contribution notices (CN) under section 38 of the PA04 on several occasions, this is the first time TPR used its section 47 powers issuing a CN in respect of a … Continue Reading
As practitioners will know, when dealing with a sale of an insolvent business they will have to consider whether the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) applies. TUPE applies to transfers of businesses or undertakings (or parts of them). If there has been a relevant transfer under regulation 3 of TUPE, then … Continue Reading
In a judgment of 9 July 2025 the Landgericht Frankfurt am Main (District Court of Frankfurt am Main) held (case 2-12 O 239/24) that a Part 26A plan sanctioned by the English High Court is not enforceable in Germany and that accordingly the affected German dissenting lender was entitled to sue the plan company, i.e. … Continue Reading
The High Court has recently provided clarity on whether liquidators, or the firms supporting them, can limit their liability when acting in a Members’ Voluntary Liquidation (MVL). The case of Pagden[1] confirms that while firms supporting liquidators may be able to limit liability in certain circumstances, liquidators themselves cannot.… Continue Reading
New guidance is the latest in a move to iron out the practical wrinkles from Part 26 and 26A of the Companies Act 2006. On 18 September 2025, the Chancellor of the High Court published a revised Practice Statement regarding Schemes of Arrangement and Restructuring Plans (the “Practice Statement”). This follows a consultation on a … Continue Reading
The ability to cram down dissenting creditors in a Restructuring Plan (RP) is a helpful tool to ensure that a proposed restructuring is not derailed. But ultimately the power rests with the court in deciding whether to cram down an RP on dissenting creditors.… Continue Reading
In the High Court decision of Pagden v Ridgley [2025] EWHC 2674 (Ch), Mr Justice Foxton considered an appeal from a decision by ICC Judge Greenwood, who previously dismissed a challenge to the fees charged by an administrator for selling land subject to a fixed charge.… Continue Reading
On 8 October 2025, the Court approved a significant milestone in the long-running insolvency proceedings of Lehman Brothers International (Europe) (LBIE). After 17 years in administration, the Court granted an order terminating the administrators’ appointments and paving the way for LBIE to enter a members’ voluntary liquidation (MVL).… Continue Reading
The High Court has refused to use its discretion to sanction a restructuring plan proposed by Waldorf Production UK Plc (Waldorf or the Company) which entailed a cramdown of the company’s unsecured creditors pursuant to Part 26A of the Companies Act 2006. Background Waldorf (and its wider group) are engaged in the exploration and production … Continue Reading
HMRC has issued new guidance explaining its expectations for the proportionate and appropriate use of Notices of Intended Dividends (NOIDs) in an MVL in light of what it says are challenges created by practitioners issuing a NOID at the start of an MVL where doing so might be inappropriate. … Continue Reading
In a short, but helpful judgment the court considered whether the stay imposed by s130(2) of the IA 1986 on actions or proceedings against a company in liquidation applied to a secured creditor exercising its power of sale. In confirming that it did not, the court outlined the purpose behind that provision and considered what … Continue Reading
The ability to fund insolvency litigation can make a significant difference to realisations in an insolvent estate. Although many claims are now assigned to specialist funders (where the funder both runs and funds the claim) some insolvency practitioners have (at least until the Supreme Court decision in PACCAR came along) used litigation funding agreements (LFAs) … Continue Reading
The Court of Appeal has handed down judgment in the Petrofac restructuring plan, overturning the sanctioning of the plans by the High Court. This is only the third time a restructuring plan has been considered by the Court of Appeal, in this blog we focus in on some of the key points of interest for … Continue Reading
In the recent judgment of Brooke Homes (Bicester) Ltd v Portfolio Property Partners Ltd (and others)[1], the High Court provided further clarity on how sale proceeds should be accounted for as between the first-ranking mortgagee and a second-ranking secured creditor.… Continue Reading
The Court of Appeal decision in Carvill‑Biggs & Anor v Reading [2025] EWCA Civ 619, clarifies the scope and application of section 234 of the Insolvency Act 1986, which empowers an office-holder to compel the delivery up of company property or documents from third parties, in relation to mortgaged land. This blog considers the unique … Continue Reading
Judge Agnello in a recent court decision[1] concluded that a company must pay its debts within the period of 12 months from the start of an MVL, and if it does not, the liquidator is obliged to convert the MVL to a company voluntary liquidation (CVL).… Continue Reading
The Insolvency Service have held a long-established view that creditors are classed as such at the point of entry into an insolvency process. This view was brought into question and challenged in the cases of Pindar and Toogood where in essence the judges (after considering the definition of secured creditor in s248 of the Insolvency … Continue Reading
Since the cases of Avanti and UKCloud we have seen more arguments around the classification of a charge – is a typical floating charge asset actually subject to a fixed charge? Is a fixed charge really floating? Much depends on the control the charge holder asserts, but we have seen some novel claims. The position … Continue Reading
In the recent appeal of Yerbury v Azets[1], the Court reiterated that an employer of an LPA receiver cannot be held vicariously liable for the actions of a receiver during a receivership and helpfully clarified the parameters of the receiver’s role by virtue of their appointment. In this blog, we delve further into the High … Continue Reading
