In the matter of Prezzo Investco Limited

In the matter of Prezzo Investco Limited

The plan satisfies statutory requirements, provides HMRC with a materially better outcome than administration, reflects creditor priorities, and is fair in all circumstances. The court has jurisdiction and exercises discretion to sanction the plan, including the cross-class cram-down of HMRC's debt.

Parties
Applicant: Prezzo Investco Limited; Creditor/respondent: His Majesty’s Revenue and Customs (HMRC)
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Restructuring Plan Sanction Application / Sanction Hearing
Outcome
Plan sanctioned
Legal Topics
Restructuring Plan, Cross Class Cram Down, Preferential Creditor Treatment, Critical Supplier Exclusion
Insolvency Company Law Restructuring Plan Cross Class Cram Down Preferential Creditor Treatment Critical Supplier Exclusion

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Parties

Prezzo Investco Limited

Applicant

His Majesty’s Revenue and Customs (HMRC)

Creditor/respondent

Procedural Posture

Restructuring Plan Sanction Application / Sanction Hearing

Legal Issues

  1. 1 Whether the restructuring plan should be sanctioned under Part 26A of the Companies Act 2006
  2. 2 Whether the cross-class cram-down power under section 901G should be exercised
  3. 3 Whether HMRC's treatment under the plan is fair given its preferential creditor status

Ratio Decidendi

The plan satisfies statutory requirements, provides HMRC with a materially better outcome than administration, reflects creditor priorities, and is fair in all circumstances. The court has jurisdiction and exercises discretion to sanction the plan, including the cross-class cram-down of HMRC's debt.

Court Disposition

Plan sanctioned

Orders

  • The restructuring plan is sanctioned under Part 26A of the Companies Act 2006, including the cross-class cram-down of HMRC's debt.