Vol 23 (2026) - Issue 3

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No Recognition of a Sanction Order Pursuant to Part 26A UK Companies Act 2006 (Restructuring Plan) in Germany

Synopsis
The European restructuring landscape is changing constantly. After the hype around the English Scheme of Arrangement, which was especially prior to Brexit an essential part of many larger restructurings in continental Europe, a lot has changed. Not just Brexit occurred, but also the introduction of the European Restructuring Directive had a central positive impact on existing (national) restructuring regimes in many European countries. However, as the present case indicates, there still seem to be benefits from foreign procedures, such as for example the Part 26A UK Companies Act 2006 (Restructuring Plan), which national regimes (still) do not seem to offer. Such cases raise interesting questions around jurisdiction and recognition of foreign proceedings. In a recent decision the Regional Court of Frankfurt/Main concluded that a sanction order pursuant to Part 26A of the UK Companies Act 2006 (Restructuring Plan) cannot be recognised in Germany. It is worth to have a closer look at this decision and its impact.