2024 Restructuring and Insolvency Wrap: 26A Evolution; LMEs and Cooperation Agreements

Legal Analyst: Shan Qureshi This year has been one of continued evolution for restructuring technology and thought leadership from key practitioners. Although the Part 26A Restructuring Plan, or Part 26A, continued to dominate in 2024 as the preferred tool for addressing financial distress in Europe, other European tools also grew in prevalence. For creditors, new strategies including reliance on cooperation agreements and directors duties evolved in response to increased threat of liability management exercises, or LMEs. Directors’ duties, valuation disputes and cross-border processes also came under intense scrutiny, with the English courts and leading barristers offering guidance throughout the year. This Octus wrap highlights the year’s key cases and trends, starting with the takeaways from 2024 and predictions for 2025.   Key Takeaways From 2024   Creative Applications of Part 26A: McDermott, Virgin Active and Prezzo’s plans showcased the continued versatility and evolution of Part 26A, with plan companies using broad definitions of “creditors” and compromising diverse liabilities, including HMRC, Landlords and Arbitration Claims. Judicial Scrutiny on CCCD: The overturning of Adler’s Part 26A plan in the Court of Appeal underscored the English court’s increased vigilance on cross-class cramdown, or CCCD, and the importance of choosing the correct relevant alternative. Evolving[...]