United Kingdom: Insolvency/Bankruptcy/Re-Structuring

The High Court has allowed an application by the administrators of a company under section 234 Insolvency Act 1986 (IA 1986) requiring a bank to deliver up funds held in the company’s bank account: Laverty v Barclays Bank plc [2026] EWHC 1222 (Ch).

The Court of Appeal has partially reversed a High Court decision in a case examining whether a chargee's appointment of administrators was invalid due to improper purpose, specifically where debt acquisition followed a failed takeover bid. The judgment clarifies the boundaries of Braganza-style rationality duties in secured lending enforcement and explores when the equitable 'proper purpose' doctrine may constrain a creditor's right to appoint administrators under Schedule B1 of the Insolvency Act 1986.

The UK Part 26A restructuring plan has emerged as a potential alternative to Chapter 11 bankruptcy for distressed companies with international operations. This episode examines how Part 26A compares to traditional U.S. bankruptcy proceedings, including differences in creditor voting, cramdown provisions, court oversight, and the strategic considerations companies must weigh when selecting their restructuring forum.