Part 26A restructuring plans: 
Like buses…

With four significant decisions in heavily contested Part 26A restructuring plans (Adler, McDermott, Aggregate and Consort Healthcare) being handed down so far in 2024, the restructuring plan is living up to its billing as the most significant change to UK restructuring and insolvency since the Enterprise Act 2003. These cases have given us greater clarity on the principles and process and also point to a number of areas to be resolved in future.

Adler (in January 2024) marks the first time the Court of Appeal has been asked to consider a restructuring plan. The decision of Snowden LJ sets down guidance that is currently binding on all future first instance decisions and involved the plan in question being overturned on appeal.

The judgments in McDermott (in late February 2024) and Aggregate (in early March 2024) have already emphasised the importance of Adler by citing, applying and building on its findings in a number of instances. Most recently, Consort Healthcare saw the High Court making the first ever security for costs order in the context of a scheme of arrangement or a restructuring plan.

In the article below, our London restructuring team set out their key takeaways and broader commentary on the very significant judgments in Adler, McDermott, Aggregate and Consort Healthcare, together with a general overview of the basic principles of the restructuring plan and the background to each of the four cases.

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