Restructuring Roundup (UK)

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Here is our summary of key developments relevant to restructuring professionals that you might have missed, with links for further information.

The Financial Conduct Authority recently updated its Guidance for Insolvency Practitioners on How to Approach Regulated Firms following a consultation last year. This addresses the introduction of the Consumer Duty, but also includes some additional checks and considerations that are worth noting ahead of appointing administrators. The feedback statement provides a useful overview of the changes that have been made.
The Employment Rights Bill proposes significant changes to employee rights. In this special briefing note, we highlight changes that insolvency practitioners will likely need to take into account ahead of a restructuring and post appointment. Also, do not miss the chance to attend the next webinar being run by our labour and employment colleagues on 11 June 2025, covering the topic of managing small-scale redundancies.
The Supreme Court recently confirmed the wide scope of s213 (fraudulent trading) in Bilta (UK) Limited [2025] UKSC 18 – the court’s press release provides a neat summary.
It is not unusual for insolvency practitioners (IPs) to have to consider the terms of a particular contract, whether that is enforcing the terms of that for the insolvent entity or considering the rights of the third party as against the company and, in some cases, it is necessary for IPs to enter into a contract. A blog post from our colleagues in our Intellectual Property & Technology Practice highlights how easy it can be to (inadvertently) create a legally binding contract – in this case, via WhatsApp – standing as a reminder to IPs that exchanges of messages could be relevant when considering a third-party contract, but also that care should be taken when exchanging messages so as not to create a contract when you do not intend to.
You may also have seen that the judiciary has launched a consultation on a revised practice statement for restructuring plans (RPs) and schemes, which will give more structure to the court process moving forward – the finalised version is expect in July.
One final insight on RPs is our pension colleagues’ new alert considering the impact of an RP on pension rights.
This decision provides a helpful reminder following the decision in BHS of the importance of directors keeping records – our blog post explores this aspect of the case in more detail.
We all understand the importance of a robust supply chain and the potentially disastrous quick impact that a failure or challenge to the chain can have on a business – the recent cyberattacks on some of the UK’s major retailers have reminded us of this. Our new four-part Supply Savvy podcast, launched in collaboration with the Food and Drink Federation, might be of interest to those advising businesses in the food and drink industry. It aims to provide valuable insights into supply chain risk management in that sector.
As a reminder, with effect from 14 May, IPs are now legally required to comply with reporting obligations in respect of certain types of business under the financial sanctions regulations. These are explained in the updated Financial Sanctions Guidance for IPs and our blog post explores the requirements in more detail.
Spotlight on our Quick Guide to Administrations – helpful for new starters or those you are advising. Also helpful to IPs is our note on what does a “reasonable prospect” of avoiding insolvent liquidation or administration mean – something that directors cannot (or will not) always accept.
We recently announced that Monica Gogna joined the firm as partner and global head of financial regulation, having most recently been the head of the Financial Institutions Law Group at EY UK. Monica has been joined by a team of four lawyers from her previous firm, including Ayesha Corrine Singh as partner. The arrival of the team follows that of Federica Taccogna and Nigel Webb, former co-heads of the Governance, Risk and Regulation practice at Interpath Advisory, who joined the firm’s Financial Services Practice Group in London last month.
Finally, the Insolvency Service recently updated its guidance note on Phoenix companies and the role of the Insolvency Service.