In a key test case on the relevance of tax losses (and more broadly, HMRC) under Part 26A of the Companies Act 2006, Mr Justice Michael Green in the High Court has sanctioned the second restructuring plan (RP2) of Waldorf Production UK Plc (the Plan Company), overriding HMRC’s challenge by using the cross-class cram down power in s.901G. The judgment resolves, at least at first instance, a series of live questions about the limits of HMRC’s ability to challenge restructuring plans and the proper scope of the “no worse off” test.
Introduction
Written by - Thomas H. Curran
As cross-border insolvencies continue to evolve, a notable shift is emerging in how complex restructurings are being executed. While Chapter 11 has long been the dominant forum for large corporate reorganizations, an increasing number of companies - particularly those with international capital structures - are turning to foreign restructuring regimes as a primary venue, with Chapter 15 serving as the mechanism to extend those proceedings into the United States.
Summary
In my earlier piece for Business Day and TimesLIVE (read here) last year, I argued that South Africa’s insolvency framework, from the enduring Insolvency Act of 1936 to the Companies Act’s business rescue provisions and the Cross-Border Insolvency Act of 2000, gives us genuine reason for pride.
A recent decision of the Supreme Court of Western Australia considered an application under Section 444GA of the Act where Administrators of a Deed of Company Arrangement sought leave to transfer the shares of an insolvent company to in circumstances where that transfer of shares would result in a return to shareholders of the insolvent company which the court referred to as “unique”.
MONTHLY NEWSLETTER ARBITRATION Rajiv Gaddh v. Subodh Parkash Civil Appeal No. of 2026(@ SLP (C) No. 4430 of 2025) M/s. MCM Worldwide Private Limited v. M/s. Construction Industry Development Council Civil Appeal No. of 2026 (@ SLP (C) No. 33075 of 2025) CIVIL LAW Reliance Eminent Trading and Commercial Private Limited v. Delhi Development Authority, Civil Appeal No. of 2026 (Arising Out of S.L.P. (Civil) No. 22100 of 2025) State Bank of India v. Amit Iron Private Limited and Others, Civil Appeal Nos. 4243-4244 of 2026 (@ Special Leave Petition (C) Nos.
- INTRODUCTION
- Cross-border insolvency proceedings routinely require courts to navigate complex questions of jurisdiction, recognition, and cooperation in circumstances where corporate structures, debtor’s assets and/or stakeholders are dispersed across multiple jurisdictions.