Background

In the period since its inception in 2020, the Part 26A restructuring plan has proven to be a powerful addition to the English restructuring toolkit, allowing – through cross-class cram down – a transaction to be imposed on a dissenting class. There is a great deal of flexibility with this power; in particular, unlike with many other regimes, there is no absolute priority rule, and therefore it is possible (in justifiable circumstances) for shareholders to retain a material equity stake, while one or more creditor classes are compromised.