Vol 19 (2022) - Issue 2

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Smile Telecoms: New Part 26A Mechanism Used to Exclude Out of the Money Classes from Voting on Restructuring Plan

Synopsis
The starting point for all restructuring plans is that those creditors and/or members to be affected by the restructuring plan should be put into classes and given the opportunity to vote on the proposal. Smile Telecoms, which last year implemented the first restructuring plan for a cross-border African business, has achieved another first by obtaining an order from the court under section 901C(4) of the Companies Act 2006 excluding all bar one class of stakeholders from voting on its new restructuring plan.