Vol 18 (2021) - Issue 5

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First Mid-Market Restructuring Plan Sanctioned by the Court: Re Amicus Finance plc (in administration) [2021] EWHC 2340 (Ch)

Synopsis
On 19 August 2021, the UK Court sanctioned the restructuring plan of Amicus Finance Plc (In Administration) (Amicus). This is the first restructuring plan of a company in administration and the first in the mid-market, following the introduction of this new restructuring tool in June 2020 by the Corporate Insolvency and Governance Act 2020 (Act). The Court also exercised its discretion to apply cross-class cram-down against a dissenting secured creditor.
Whilst the Court sanctioned the restructuring plan (Plan) itself, Sir Alastair Norris’ reasoned judgment behind his decision is yet to be delivered, however the background and details of the Plan, arguments raised by the dissenting creditor and matters considered by the Court (and which are expected to be set out in the full judgment in due course) are set out below.