Kirkland Alert

Adler: English Court of Appeal Overturns Restructuring Plan

The English Court of Appeal today handed down its 65-page judgment unanimously overturning approval of Adler’s restructuring plan, following a successful challenge from an ad hoc committee of holders of 2029 Notes (the 2029 AHG).  Adler’s plan is the first to be appealed since restructuring plans were introduced c.3.5 years ago.

The 2029 AHG successfully contended that creditors’ treatment under the plan unjustifiably diverged from the “pari passu” treatment which the unsecured notes amended under the plan would receive in the liquidation alternative to the plan (in which all plan creditors would have been entitled to a pro rata share of recoveries).

This seminal judgment by Snowden LJ clarifies existing case law on restructuring plans and sets a framework for the exercise of the court’s discretion in binding dissenting classes to restructuring plans. 

Read our detailed Alert.
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