IN THE MATTER OF HOUST LIMITED

IN THE MATTER OF HOUST LIMITED

The restructuring plan satisfies the statutory conditions for cross-class cram-down: HMRC, the dissenting class, is no worse off under the plan than in the relevant alternative, and the plan was approved by the in-the-money class (the Bank). The plan is fair, the statutory requirements have been met, and there is no active opposition. The court exercises its discretion to sanction the plan.

Parties
Applicant Company: Houst Limited; Secondary Preferential Creditor: HMRC; Secured Creditor: Clydesdale Bank Plc; Trade Creditor (objector): Laundryheap; Applicant's Advocates: Irwin Mitchell LLP
Jurisdiction
England and Wales
Judgment Date
22 July 2022
Procedural Posture
Restructuring Plan Sanction Application / Judgment on Sanctioning Restructuring Plan Under Part 26 a Companies Act 2006
Outcome
Restructuring plan sanctioned
Legal Topics
Restructuring Plan, Cross Class Cram Down, Scheme of Arrangement, Creditors' Rights, Companies Act 2006 Part 26 a
Insolvency Company Law Restructuring Plan Cross Class Cram Down Scheme of Arrangement Creditors' Rights Companies Act 2006 Part 26 a

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 4 Authorities cited 9 Party arguments 2 Amounts and remedies 17
Sign in to unlock

Parties

Houst Limited

Applicant Company

HMRC

Secondary Preferential Creditor

Clydesdale Bank Plc

Secured Creditor

Laundryheap

Trade Creditor (objector)

Irwin Mitchell LLP

Applicant's Advocates

Procedural Posture

Restructuring Plan Sanction Application / Judgment on Sanctioning Restructuring Plan Under Part 26 a Companies Act 2006

Legal Issues

  1. 1 Whether the restructuring plan should be sanctioned under Part 26A Companies Act 2006
  2. 2 Whether cross-class cram-down power under section 901G should be exercised
  3. 3 Whether dissenting class (HMRC) is no worse off under the plan than in the relevant alternative

Ratio Decidendi

The restructuring plan satisfies the statutory conditions for cross-class cram-down: HMRC, the dissenting class, is no worse off under the plan than in the relevant alternative, and the plan was approved by the in-the-money class (the Bank). The plan is fair, the statutory requirements have been met, and there is no active opposition. The court exercises its discretion to sanction the plan.

Court Disposition

Restructuring plan sanctioned

Orders

  • The restructuring plan under Part 26A Companies Act 2006 in respect of Houst Limited is sanctioned.