- Challenging a Restructuring Plan to Safeguard Pari Passu Principle
Challenging a Restructuring Plan to Safeguard Pari Passu Principle
-
6月 12, 2024
-
FTI Consulting was engaged by an ad hoc group (“AHG”) of 2029 bondholders to advise and oppose the proposed UK Restructuring Plan (“UK RP”) for German residential real estate company Adler Group, because if approved it would detrimentally and unfairly affect the longer-dated maturities, including the €900 million 2029 Notes.
Our Impact
- FTI Consulting provided competing expert evidence to the High Court which set out analysis of estimated AHG recoveries under the proposed UK RP and in the Relevant Alternative which included the cross-examination of Senior Managing Director Lisa Rickelton. Justice Leech commended her expert report as being “very useful in understanding the consequences” of the proposed transaction.
- After the UK RP was initially sanctioned by the High Court in April 2023, FTI Consulting continued to support the AHG and its counsel during the appeal process, which was ultimately successful in overturning the original sanction order, following a hearing in the Court of Appeal in October 2023 and a final judgment by the Court of Appeal setting aside the order in January 2024.
- The analysis produced by our experts was pivotal in demonstrating that pari passu was breached, leading to the Restructuring Plan being overturned.
- To date, this represents the first and only time a UK RP has been challenged in the Court of Appeal, and the judgment has provided important guidance and precedents to the evolving UK regime for in-court (debtor-led) restructurings, with amendments witnessed for subsequent Restructuring Plans.
Our Role
- FTI Consulting advised the AHG on their discussions with the Adler Group and the SteerCo in respect to various restructuring proposals and related negotiations.
- The team provided robust, clear and detailed financial analysis of the UK RP under extreme time pressure, outlining returns to all series of Notes under both the Restructuring Plan and the Relevant Alternative scenarios, in conjunction with real estate valuation input from Knight Frank.
Related Case Studies
- Maintaining Public Confidence in the National Health Service During a Global Health Crisis During COVID-19, NHS hospitals needed help with strategic communications. FTI Consulting worked alongside the NHS to facilitate media requests and more. Read Case Study
- Defining a Record $27 Million Civil Rights Settlement for the Estate of George Floyd FTI Consulting’s Compass Lexecon assisted with a federal civil rights lawsuit filed by the Estate of George P. Floyd, reaching a historic settlement amount. Read Case Study
- Ed Sheeran Prevails in Music Copyright Infringement Case FTI Consulting provided key trial technology for Ed Sheeran’s defense in a music copyright infringement case involving his 2014 hit song, “Thinking Out Loud.” Read Case Study
- Helping British Consumers Save Millions on Energy in a Reformed Market FTI Consulting assessed how large energy-intensive consumers could save on electricity bills by siting in areas with lower wholesale electricity costs. Read Case Study
- Advancing International Accountability in Support of Ukraine Following the February 2022 invasion of Ukraine, FTI Consulting acted in support of a special international tribunal to hold Russian leadership accountable. Read Case Study
- Helping Hertz Get Its Wheels Back in Motion When COVID-19 put a pause on travel, Hertz filed for bankruptcy and enlisted FTI Consulting to support its chapter 11 restructuring. Learn more here. Read Case Study
出版
6月 12, 2024