The Prezzo restructuring plan Court exercises discretion to cram … – Mayer Brown

Summary

The English High Court¹ exercised its discretion to sanction a restructuring plan proposed by Prezzo Investco Limited (the Company), the parent company of Prezzo Trading Limited which is the operator of an Italian casual dining chain.  The plan was opposed by HMRC, which had both secondary preferential claims and unsecured claims.  In sanctioning the plan, the Court exercised its discretion to cram-down HMRC’s debt. 

This case can be contrasted with two recent decisions in which the High Court declined to sanction proposed restructuring plans which it found to be unfair to HMRC.  These decisions could be distinguished on the facts and here the Court was satisfied that the plan was “fair”. 

It is important to note that the Court …

Read the full article at: https://www.mayerbrown.com/en/perspectives-events/publications/2023/07/the-prezzo-restructuring-plan-court-exercises-discretion-to-cram-down-hmrc-debt-confirms-no-requirement-for-company-to-provide-consideration-to-out-of-the-money-plan-creditors