Vol 20 (2023) - Issue 2

Article preview

Re The Good Box Co Labs Limited [2023] EWHC 274 (Ch)

Synopsis
The High Court in Leeds has approved a Part 26A restructuring plan which would allow The Good Box Co Labs Limited ('Good Box') to exit administration and continue to operate as a going concern. The decision was notable for the fact that the restructuring plan was proposed by an individual creditor (as opposed to the company itself) and that the High Court approved the restructuring plan notwithstanding opposition from the appointed administrators of the company.
This development could be seen as paving the way for 'in the money' creditors to increasingly take charge of the recovery process by not just opposing a companyled solution but by proposing their own alternative restructuring plan. The decision also provided useful guidance on how practical obstacles such as creditor access to company information might be overcome in any creditor-led proposal.