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.

MVLs seem to be one of the hot topics of the year. Most recently, we have seen the court agreeing that the administrators of Lehmans could exit the administration by moving the company into MVL – an exit route not specifically set out in Schedule B1, but nevertheless available in the right circumstances (see our blog) and also the case of Pagden v Fry [2025] EWHC 2316 (Ch), where the court considered whether MVL liquidators or their firms could limit their liability for acting as such, deciding that they cannot. If you missed it last time, see our MVL update for other MVL developments this year.
Expect restructuring plans (RP) to start the New Year with a bang, with Waldorf getting permission to appeal to the Supreme Court following the High Court declining to sanction it’s RP earlier this year – read why in our blog. The appeal hearing is scheduled to take place in early 2026, and, if this goes ahead, we can expect clearer guidance on the approach plan that companies should take to allocating value amongst creditors. The new practice statement in respect of schemes of arrangement and RPs will also apply to any hearings on or after 1 January 2026 – which means that it will need to be taken into account in any RPs that are in the throes of being drafted/proposed. We explore the impact of this on process in this blog.
The court has recently dismissed an appeal of an earlier finding that Part 18 of the Insolvency Rules 2016 does not apply to remuneration agreed in connection with dealing with fixed charge assets – we discuss what this means for practitioners in this blog.
There appears to be an uptick in fraud being reported, particularly in relation to ABL lending, and with the Insolvency Service expected to take a more robust approach to enforcement in 2026 and beyond, we can expect to see more litigation across our desks. With that in mind, we are shortly launching our litigation quick guides that will explore all aspects of insolvency litigation from claims to powers, to funding and beyond. Our first guide giving an overview of insolvency claims will be available in our Thought Leadership Library soon. Watch this space.
You will have probably seen that individuals and businesses are being given a chance to repay monies acquired through one of the covid schemes on a “no questions asked" basis. This comes ahead of tougher sanctions being pursued, but as the IPA reports, this does not guarantee directors protection, and IPs should still report misconduct. For directors who wish to understand a bit more about their duties in a stressed/distress scenario, our quick guide to directors’ duties provides a good starting point.
Our labour and employment colleagues are hosting a webinar on 19 November, exploring what UK employers need to know about the new Employment Rights Act. Or, join them on 12 November at a webinar exploring the key legal and practical issues to consider when entering into settlement agreements in the workplace. These are both areas relevant to IPs.
As supply chain concerns impact all sectors, creating the potential need to restructure, our new podcast series, Supply Chain Reaction – Navigating the Legal Landscape of Supply Chains, could also be of interest.