In these uncertain times, some companies are exploring ways to restructure their existing credit facilities to navigate business challenges, including cash flow shortages. Highly leveraged companies that are taxed as partnerships, such as the portfolio companies of private equity funds, must carefully consider the significant tax consequences associated with restructuring and modifying their debt obligations, especially if the company is or is likely to be in financial distress.

On 3 September 2025, the Court of Appeal handed down judgment in East Riding of Yorkshire Council v KMG SICAV-SIF-GB Strategic Land Fund [2025] EWCA Civ 1137, confirming that a “dedicated fund” of a Luxembourg specialised investment company was not an “unregistered company” within the meaning of section 220 of the Insolvency Act 1986 (the “Act”), and therefore could not be wound up by the court under section 221 of the Act.