A case examining whether certain elements of a restructuring plan under Pt 26A Companies Act 2006 were justified and fair.

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The Court of Appeal tackles in detail some critical principles which restructuring plans under Pt 26A Companies Act 2006 are built upon. It centres upon whether one plan fairly treated all creditors, and whether it endorsed the pari passu distribution principle.

The novel statutory powers of cross-class cram down are also examined and assessed on the basis of whether they are fair to all creditor classes (horizontal comparison); and whether the plan is also fair in relation to the treatment of creditors in the relative alternative scenario of liquidation (vertical comparison).