In this edition of our bulletin, a recent case provides a cautionary reminder to check that the instrument creating a security interest is properly presented for registration - Andrew and Caroline discuss.
Andrew and Luke also wrestle with the potentially tricky topics of novation, as they consider the lessons from the recent Oldham Athletic case. Continuing the football theme, Matt looks at whether West Ham’s arrangements for the transfer fee paid for Declan Rice really constitute a “pay day loan”.
Our ongoing A-Z of banking and finance series aims to demystify key terms: the focus this time for Matt and Dan is on junior debt.
Spotlight on restructuring plans: restructuring plans are a formal arrangement between a company and its creditors and/or shareholders, with the added turbo charged boost of “cross-class cramdown” designed to get around dissenting creditors. They are a relatively new beast in English restructuring procedures, introduced in 2020 as a new part 26A of the Companies Act by the Corporate Insolvency and Governance Act. Caselaw has recently stepped up a notch with January’s Court of Appeal decision on the use of the cross-class cram down power in Adler. Our restructuring colleagues David and Helen write about the implications of the decision on the evolution of restructuring plans. They also consider the post-Adler approval of the restructuring plan in McDermott and the need for a reconvened meeting in Aggregate. Following the approval of its restructuring plan in July last year, Sammy looks at the improvement in Prezzo’s fortunes.
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Andrew Dodds
Matthew Padian