Madagascar Oil Limited, Re

Madagascar Oil Limited, Re

The court sanctioned the restructuring plan under Part 26A, finding all statutory conditions satisfied. The plan was fair, provided a reasonable allocation of value, and Outrider was not worse off than in the relevant alternative (liquidation). The plan was likely to be recognised in Mauritius and Madagascar, and objections regarding fairness, international effectiveness, and operability were rejected. The court found Outrider's alternative proposals speculative and not credible, and that BMK's provision of new money and willingness to take risk justified its share of the restructuring surplus.

Parties
Applicant/plan Company: Madagascar Oil Limited; Respondent/creditor: Outrider Master Fund LP; Creditor/parent Company: BMK Resources Ltd
Jurisdiction
England and Wales
Judgment Date
15 August 2025
Procedural Posture
Restructuring Plan Sanction Application (part 26 A, Companies Act 2006) / Judgment Following Trial and Sanction Hearing
Outcome
Restructuring plan sanctioned; application granted.
Legal Topics
Restructuring Plan, Cross Class Cramdown, Recognition of Foreign Insolvency Proceedings, Scheme of Arrangement, Jurisdiction, COMI, Creditor Rights, Guarantee Enforcement, Third Party Releases
Insolvency Company Law Cross Border Insolvency Restructuring Plan Cross Class Cramdown Recognition of Foreign Insolvency Proceedings Scheme of Arrangement Jurisdiction +4 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 20 Party arguments 2 Amounts and remedies 14
Sign in to unlock

Parties

Madagascar Oil Limited

Applicant/plan Company

Outrider Master Fund LP

Respondent/creditor

BMK Resources Ltd

Creditor/parent Company

Procedural Posture

Restructuring Plan Sanction Application (part 26 A, Companies Act 2006) / Judgment Following Trial and Sanction Hearing

Legal Issues

  1. 1 Whether the proposed restructuring plan under Part 26A Companies Act 2006 should be sanctioned
  2. 2 Whether the plan meets the statutory requirements for cross-class cramdown
  3. 3 Whether the plan is fair and achieves a fair allocation of restructuring surplus

Ratio Decidendi

The court sanctioned the restructuring plan under Part 26A, finding all statutory conditions satisfied. The plan was fair, provided a reasonable allocation of value, and Outrider was not worse off than in the relevant alternative (liquidation). The plan was likely to be recognised in Mauritius and Madagascar, and objections regarding fairness, international effectiveness, and operability were rejected. The court found Outrider's alternative proposals speculative and not credible, and that BMK's provision of new money and willingness to take risk justified its share of the restructuring surplus.

Court Disposition

Restructuring plan sanctioned; application granted.

Orders

  • The restructuring plan under Part 26A Companies Act 2006 is sanctioned as proposed.
  • All necessary releases, compromises, and arrangements set out in the plan are approved and binding on the relevant parties.