Its now level pegging for HMRC on cram down twice it has been crammed down, and twice it has not.
In the most recent restructuring plan proposed by Prezzo, the court sanctioned the companys restructuring plan and crammed down HMRC as both preferential and unsecured creditor. Unlike Housts restructuring plan, where HMRC was also crammed down, HMRC fiercely contested the plan proposed by Prezzo.
Alongside various policy arguments that sanctioning plans that cram down tax debts sends the wrong message, that it could be open to abuse HMRC also relied on recent judgments where cram was refused. However, citing their special status as preferential creditor, how their views should be given considerable weig…
Read the full article at: https://www.natlawreview.com/article/are-hmrc-critical-to-uk-restructuring-plans