Vol 19 (2022) - Issue 4

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E D & F Man Restructuring Plan: Key Points for Practitioners

Synopsis
The E D & F Man Group (the 'Group') transaction consisted of a complex cross-border refinancing of multiple debt instruments totalling over USD 1.5 billion, together with a ringfencing/intra-group reorganisation and recapitalisation of the Group's commodities trading business. The commodities recapitalisation included the injection of USD 300 million of new money to finance future trading. The transaction was implemented by way of an English restructuring plan, involving five creditor and two shareholder/member classes and the use of cross-class cram-down. It represents the first large-scale international restructuring plan to amend under a single process both a company's shareholders/share documentation and its financial debt. This is the paradigm use case for the restructuring plan, which was introduced in June 2020 by the Corporate Insolvency and Governance Act 2020. This article focuses on key points of interest for restructuring practitioners arising out of the convening and sanction hearings.