Vol 23 (2026) - Issue 1

Article preview

Contentious Restructurings as Commercial Litigation

Synopsis
Since its introduction into English law in 2020, the restructuring plan has proven to be popular but prone to challenge. It provides a powerful tool in the armoury of a distressed business – able, among other things, to bind objecting classes of creditors or shareholders if other classes agree to the plan's terms. Recent decisions have seen the English courts clarify the basis on which challenges will be managed and refine the issues on which challenges might succeed. It is clear that a company that promulgates a restructuring plan must be prepared to engage in what is effectively commercial litigation and justify the terms of its proposals.
This article examines in detail the scope of the English courts' jurisdiction and the key areas in which disputes have arisen when restructuring plans are contested. Thereafter, it takes a closer look at the procedural and practical issues that arise as a result of the courts' approach of treating contentious restructuring proceedings as commercial litigation, with all of the procedural rigour that entails.