Company
Re Poundland Ltd [2025] EWHC 2755 (Ch)
The Chancery Division approved a restructuring plan under Part 26A of the Companies Act 2006 for Poundland Ltd, a discount retailer facing imminent insolvency. The court held that the evidence was clear that, but for the implementation of some sort of restructuring plan or refinancing, Poundland was due to become cashflow insolvent within days of the sanction hearing. The plan was approved in the light of Poundland’s financial difficulties. The court held that all requisite conditions had been complied with. While some creditor classes voted against the plan, including most landlord classes, the court exercised its ‘cram down’ power to bind dissenting classes (unsecured creditors) after finding that: (i) no member of the dissenting classes would be worse off under the plan than in the relevant alternative (administration); (ii) at least one class of creditors who would have a genuine economic interest in the relevant alternative had approved the plan; and (iii) the plan represented a fair sharing of the burdens and benefits
