Europe: Insolvency/Bankruptcy/Re-Structuring

Private credit lenders face a new reality as U.S. distressed borrowers increasingly turn to English restructuring tools to reorganize New York law-governed debt outside of Chapter 11. Recent cases demonstrate how Schemes of Arrangement and Restructuring Plans can bind dissenting creditors, reduce minority creditor influence, and potentially circumvent the absolute priority rule. Understanding these cross-border mechanisms has become essential for lenders navigating modern restructuring dynamics.

Macfarlanes has successfully advised Iguanas Holdings Limited on a groundbreaking restructuring plan under Part 26A of the Companies Act 2006, marking the first such plan sanctioned under the Court's new Practice Statement. The restructuring addresses lease and business rates liabilities while facilitating new funding from its parent company to support the Latin American restaurant chain's turnaround strategy.

The High Court has dismissed claims totalling £478m under sections 238 (transaction under value, TUV) and 239 (preference) of the Insolvency Act 1986 arising from an intra-group restructuring within the Co-operative...