Overview
Mark Fine, a partner at law firm McDermott Will & Emery, said:
“The judgement handed down in Good Box continues to highlight the flexibility afforded under the Part 26A restructuring plan and builds on the momentum garnered with the likes of Houst last year in showing that the plan is available to smaller debtors who may not have sufficient funds to afford the costs often associated with a plan.
The judgment also serves to highlight some of the differences between the scheme of arrangement and the plan, through the well-publicised cross class cram down and the requirement for a company to be in financial difficulty. It’s also noteworthy that, the plan was brought by one of the principal creditors – a deviation from the customary debtor-led plans and serves as useful precedent to any challenge that company consent to sanction the plan is required.”
