In the matter of Listrac Midco Limited

In the matter of Listrac Midco Limited

The restructuring plans were sanctioned because all statutory requirements under Part 26A Companies Act 2006 were met, including approval by requisite majorities or satisfaction of cross-class cram down conditions. All creditor classes would be no worse off than in the relevant alternative, the plans were fair and reasonable, and there was no defect or blot. The plans provided a better outcome for all creditors than administration or liquidation, and the process was properly conducted.

Parties
Applicant Company: Listrac Midco Limited; Applicant Company: Listrac Bidco Limited; Applicant Company: Lifeways Finance Limited; Applicant Company: Lifeways Community Care Limited; Applicant Company: Living Ambitions Limited; Applicant Company: Autism Care (UK) Limited; Applicant Company: Vitavia Property Management Limited
Jurisdiction
England and Wales
Judgment Date
03 March 2023
Procedural Posture
Restructuring Plan Sanction Application / Judgment on Sanction of Restructuring Plans
Outcome
Restructuring plans sanctioned for all seven applicant companies.
Legal Topics
Restructuring Plans, Cross Class Cram Down, Creditors' Meetings, Sanction of Schemes, Class Composition, Relevant Alternative, Unsecured Creditors, Secured Creditors
Insolvency Law Company Law Restructuring Plans Cross Class Cram Down Creditors' Meetings Sanction of Schemes Class Composition Relevant Alternative +2 more

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Parties

Listrac Midco Limited

Applicant Company

Listrac Bidco Limited

Applicant Company

Lifeways Finance Limited

Applicant Company

Lifeways Community Care Limited

Applicant Company

Living Ambitions Limited

Applicant Company

Autism Care (UK) Limited

Applicant Company

Vitavia Property Management Limited

Applicant Company

Procedural Posture

Restructuring Plan Sanction Application / Judgment on Sanction of Restructuring Plans

Legal Issues

  1. 1 Whether the statutory requirements for sanctioning restructuring plans under Part 26A Companies Act 2006 are met
  2. 2 Whether cross-class cram down under s.901G CA 2006 is available and appropriate
  3. 3 Whether the plans are fair and reasonable to creditors

Ratio Decidendi

The restructuring plans were sanctioned because all statutory requirements under Part 26A Companies Act 2006 were met, including approval by requisite majorities or satisfaction of cross-class cram down conditions. All creditor classes would be no worse off than in the relevant alternative, the plans were fair and reasonable, and there was no defect or blot. The plans provided a better outcome for all creditors than administration or liquidation, and the process was properly conducted.

Court Disposition

Restructuring plans sanctioned for all seven applicant companies.

Orders

  • The restructuring plans for Listrac Midco Limited, Listrac Bidco Limited, Lifeways Finance Limited, Lifeways Community Care Limited, Living Ambitions Limited, Autism Care (UK) Limited, and Vitavia Property Management Limited are sanctioned.