The LFI Levered Lines Podcast Restructuring Plans – Reasons to be Cheerful
Dec 2, 2025
Tim Newey, Slaughter and May restructuring partner experienced in landmark plans. Professor Sarah Paterson, academic and former partner offering doctrinal and policy perspective. Ryan Perkins, South Square counsel with hands-on High Court practice. They discuss Part 26A’s growing pains, court expectations for negotiation and evidence, comparisons with Chapter 11, valuation burdens, cross-border uses, and procedural fixes like clearer modification and judicial continuity.
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Cramdown Is About Fair Offers Not Waterfalls
- The Court of Appeal reframed cramdown: it’s to override classes unreasonably holding out, not to ignore crystallising-loss creditors.
- Sarah Paterson explains fairness hinges on whether a class got a fair offer, not just waterfall mechanics.
Explain Substance And Process Clearly
- Explain both why your proposal is fair and the negotiation process you ran or why you couldn't run one.
- Tim Newey points to Poundland where post-launch engagement and adjustments persuaded the court despite limited pre-launch bargaining.
Large Creditor Classes Need Practical Outreach
- For large dispersed creditor classes (eg landlords) courts expect outreach and pragmatic solutions like town-hall style engagement.
- Ryan Perkins says mass classes can be managed without bilateral deals but single large holdouts remain the hard question.