The Corporate Insolvency and Governance Act 2020 introduced a new restructuring plan (the “Restructuring Plan”) under Part 26A of the Companies Act 2006. As a recent entrant into the market, the Restructuring Plan is now making noise – most notably, when its cross-class cram-down feature was used, for the first time, by a UK subsidiary of DeepOcean Group Holding B.V. (together with all of its subsidiaries, the “DeepOcean Group”). The DeepOcean Group’s use of the Restructuring Plan also marks the first time that a Restructuring Plan has been used to facilitate a solvent wind-down, rather than a rescue.
This client alert summarises the latest developments relating to the Restructuring Plan and is relevant to disrupted, stressed, and distressed companies, as well as their directors and creditors.