Nasmyth Group Ltd [2023] EWHC 696 (Ch) (14 February 2023)

Nasmyth Group Ltd [2023] EWHC 696 (Ch) (14 February 2023)

The court is satisfied that the jurisdictional and threshold conditions for a restructuring plan under Part 26A Companies Act 2006 are met, that the proposed class composition is appropriate for convening meetings, and that adequate notice and information have been provided to creditors given the urgency. Any unresolved objections or further evidence may be raised at the sanction hearing.

Citation
[2023] EWHC 696 (Ch)
Parties
Applicant/company: Nasmyth Group Limited; Creditor/respondent: HMRC; Creditor/objector: Mr Fyfe; Creditor/objector: Mr Smith
Jurisdiction
England and Wales
Judgment Date
14 February 2023
Procedural Posture
Restructuring Plan Convening Application / Convening Hearing for Creditor Meetings Under Part 26 a Companies Act 2006
Outcome
Order granted for convening creditor meetings for the proposed restructuring plan.
Legal Topics
Restructuring Plan, Creditor Meetings, Class Composition, Cross Class Cram Down, Jurisdiction, Threshold Conditions, Notice to Creditors
Insolvency Company Law Restructuring Plan Creditor Meetings Class Composition Cross Class Cram Down Jurisdiction Threshold Conditions +1 more

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Parties

Nasmyth Group Limited

Applicant/company

HMRC

Creditor/respondent

Mr Fyfe

Creditor/objector

Mr Smith

Creditor/objector

Procedural Posture

Restructuring Plan Convening Application / Convening Hearing for Creditor Meetings Under Part 26 a Companies Act 2006

Legal Issues

  1. 1 Whether the court should order the convening of creditor meetings for the proposed restructuring plan under Part 26A Companies Act 2006
  2. 2 Whether the jurisdictional and threshold conditions for a restructuring plan are met
  3. 3 Whether the proposed creditor classes are appropriate

Ratio Decidendi

The court is satisfied that the jurisdictional and threshold conditions for a restructuring plan under Part 26A Companies Act 2006 are met, that the proposed class composition is appropriate for convening meetings, and that adequate notice and information have been provided to creditors given the urgency. Any unresolved objections or further evidence may be raised at the sanction hearing.

Court Disposition

Order granted for convening creditor meetings for the proposed restructuring plan.

Orders

  • Company to amend Explanatory Statement to provide further detail on critical supply creditors and identify connected creditors.
  • Company to address issues raised by creditors in correspondence or further evidence before the sanction hearing.