The decision provides new judicial guidance for determining the boundaries of cross-class cram down tests.

On 28 June 2021, the High Court declined to sanction a restructuring plan proposed by Hurricane Energy plc (Hurricane), an AIM listed oil drilling company, under Part 26A of the Companies Act 2006 (Act). The plan would have seen shareholders diluted to 5% of Hurricane’s equity, with the remaining 95% issued to bondholders as consideration for a partial debt-for-equity swap.

This Client Alert examines Mr Justice Zacaroli’s reasoning and considers some of the lessons for future restructuring plans.