Petition of Dobbies Garden Centres LTD (Court of Session) [2024] CSOH 111 (20 December 2024)

Petition of Dobbies Garden Centres LTD (Court of Session) [2024] CSOH 111 (20 December 2024)

The court sanctioned the restructuring plan because the statutory threshold conditions were met, the plan was approved by the secured creditors, the dissenting classes would be no worse off than in administration, the plan was fair, and all procedural requirements were satisfied. Cross-class cram down was properly invoked under section 901G.

Citation
[2024] CSOH 111
Parties
Petitioner: Dobbies Garden Centres Limited
Jurisdiction
Scotland
Judgment Date
20 December 2024
Procedural Posture
Part 26 a Companies Act 2006 Restructuring Plan Petition / Sanction Hearing
Outcome
petition granted; restructuring plan sanctioned
Legal Topics
Restructuring Plan, Cross Class Cram Down, Creditor Compromise, Sanction of Arrangement
Corporate Insolvency Company Law Restructuring Plan Cross Class Cram Down Creditor Compromise Sanction of Arrangement

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Parties

Dobbies Garden Centres Limited

Petitioner

Procedural Posture

Part 26 a Companies Act 2006 Restructuring Plan Petition / Sanction Hearing

Legal Issues

  1. 1 Whether the court should sanction a restructuring plan under Part 26A Companies Act 2006
  2. 2 Whether cross-class cram down requirements under section 901G are satisfied
  3. 3 Whether the plan is fair to dissenting creditor classes

Ratio Decidendi

The court sanctioned the restructuring plan because the statutory threshold conditions were met, the plan was approved by the secured creditors, the dissenting classes would be no worse off than in administration, the plan was fair, and all procedural requirements were satisfied. Cross-class cram down was properly invoked under section 901G.

Court Disposition

petition granted; restructuring plan sanctioned

Orders

  • Sanction of the restructuring plan under Part 26A Companies Act 2006
  • Cross-class cram down imposed on dissenting creditor classes