In the UK, some commentators sounded the death knell to the restructuring plan, suggesting that the process would become overly challenging and complex post Adler, Petrofac and Thames Water, highlighting the current landscape as an inflection point that may take restructuring plans out of the reach of companies that would benefit from them the most. However, it was always envisaged that case law would develop the approach that the court should take when exercising its discretion to sanction a restructuring plan. The trilogy of Court of Appeal cases and the principles they establish are part of the natural evolution of restructuring plans and represent a development that the market must embrace when structuring a restructuring plan and preparing the evidence that the court expects to see from the plan company’s legal and financial advisers.

Click here to read the full GT Advisory.