Kunal Gadhvi
Partner
Restructuring plans solicitors
The Restructuring Plan procedure was introduced as part of the Corporate Insolvency and Governance Act 20202 (“CIGA 2020”). It’s a powerful and flexible tool to help businesses facing financial distress survive and avoid a formal insolvency process.
When Is A Restructuring Plan An Option, And Who Can Use One?
Since its introduction in 2020, we’ve seen the Restructuring Plan process used by a number of businesses, including: Virgin Atlantic Airways, DeepOcean, Virgin Active, and Prezzo. A Restructuring Plan can be used for both SMEs and large corporates.
Read our case study below where we advised on the landmark first use of the legislation to secure the future of an SME in distress.
Since its introduction in 2020, we’ve seen the Restructuring Plan process used by a number of businesses, including: Virgin Atlantic Airways, DeepOcean, Virgin Active, and Prezzo. A Restructuring Plan can be used for both SMEs and large corporates. Read our case study below where we advised on the landmark first use of the legislation to secure the future of an SME in distress.
Our expert lawyers have advised a range of businesses looking at entering into a Restructuring Plan, including advising on the landmark case of Re Houst Limited, the first SME restructuring plan. We’ve also advised creditors of companies which are affected by a proposed Restructuring Plan who need advice about their position and the compromise they’re being asked to accept.
If a Restructuring Plan is an appropriate way forward for your company and/or or you’re a creditor affected by a proposed Restructuring Plan, our team can provide:
- Advice on the legal procedure and the implications of the process
- Advice on creditor class composition and viability of the Restructuring Plan, together with the proposed Plan Administrator (an insolvency practitioner who provides evidence of valuation and the relevant alternative in support of the plan)
- Draft documentation for the Restructuring Plan, including the required Practice Statement Letter, Explanatory Statement, the Restructuring Plan document, claim form, witness statements, and draft orders for the Plan Meetings of creditors / members and for the sanctioning the plan
- Advice and assistance on other legal aspects throughout the process.
Our experience and pricing structure makes the Restructuring Plan a viable option for companies of most sizes and turnover. We have specialist expertise in the Consumer and Manufacturing sectors. We can also provide advice to creditors or members of plan companies.
We can help you understand the Restructuring Plan process and its impact, and advise you on protecting your position and future steps. Learn more in our guide to Restructuring Plans.
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When Is A Restructuring Plan An Option, And Who Can Use One?
Since its introduction in 2020, we’ve seen the Restructuring Plan process used by a number of businesses, including: Virgin Atlantic Airways, DeepOcean, Virgin Active, and Prezzo. A Restructuring Plan can be used for both SMEs and large corporates.
Read our case study below where we advised on the landmark first use of the legislation to secure the future of an SME in distress.
Since its introduction in 2020, we’ve seen the Restructuring Plan process used by a number of businesses, including: Virgin Atlantic Airways, DeepOcean, Virgin Active, and Prezzo. A Restructuring Plan can be used for both SMEs and large corporates. Read our case study below where we advised on the landmark first use of the legislation to secure the future of an SME in distress.
Our expert lawyers have advised a range of businesses looking at entering into a Restructuring Plan, including advising on the landmark case of Re Houst Limited, the first SME restructuring plan. We’ve also advised creditors of companies which are affected by a proposed Restructuring Plan who need advice about their position and the compromise they’re being asked to accept.
If a Restructuring Plan is an appropriate way forward for your company and/or or you’re a creditor affected by a proposed Restructuring Plan, our team can provide:
- Advice on the legal procedure and the implications of the process
- Advice on creditor class composition and viability of the Restructuring Plan, together with the proposed Plan Administrator (an insolvency practitioner who provides evidence of valuation and the relevant alternative in support of the plan)
- Draft documentation for the Restructuring Plan, including the required Practice Statement Letter, Explanatory Statement, the Restructuring Plan document, claim form, witness statements, and draft orders for the Plan Meetings of creditors / members and for the sanctioning the plan
- Advice and assistance on other legal aspects throughout the process.
Our experience and pricing structure makes the Restructuring Plan a viable option for companies of most sizes and turnover. We have specialist expertise in the Consumer and Manufacturing sectors. We can also provide advice to creditors or members of plan companies.
We can help you understand the Restructuring Plan process and its impact, and advise you on protecting your position and future steps. Learn more in our guide to Restructuring Plans.
Case Study – Houst Limited
Houst operates in eight countries and employs 300 people via independent contractors. The Company and its Group specialises in providing property management services for short-term and holiday lettings. The business lists properties on various websites, including Airbnb and booking.com, but due to the coronavirus pandemic it experienced a significant reduction in demand.
In July 2022, our expert solicitors liaised with the High Court on behalf of Houst Limited and proposed that the High Court should sanction the Restructuring Plan for Houst Limited (the “Company”) and its subsidiaries (the “Group”). This landmark decision was the first SME Restructuring Plan, which confirmed the process as a viable tool for SME businesses as well as for large corporates.
It was also the first occasion that the Restructuring Plan procedure included the cross-class cram down of the UK tax authority, HM Revenue & Customs, the dissenting secondary preferential creditor in this case.
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