K Restructuring Law News Today

Criticisms of pre pack administrations have often arisen where buyer is connected to insolvent company, there has been a limited and short marketing process, the purchase price doesn't appear from the outside to reflect the value of the business.

Yesterday saw the end of a three-day sanction hearing for the restructuring plan of Great Annual Savings company, with Justice Adam Johnson reserving his judgment and importantly, his decision on whether to exercise cross-class-cram-down to sanction the Plan for a later date

HMRC opposes restructuring plans proposed by The Great Annual Savings Company and Nasmyth Group Limited. GAS sanction hearing will be first time HMRC has actively contested restructuring plan at sanction after Houst where Court exercised power to cram down HMRC.

The sanctioning of the Good Box restructuring plan shows UK Court can sanction restructuring plan without company consent. This is at odds with long-standing decision in Re Savoy Hotels where court declined to sanction Savoy scheme because company did not approve.