German court refuses to recognise UK restructuring plan for Project Fürst

A German court has refused to recognise a UK-sanctioned restructuring plan for Project Fürst, one of Berlin’s largest real estate developments, raising difficult questions for UK insolvency practitioners about the cross-border effectiveness of Part 26A restructuring plans in a post-Brexit world.

Hogan Lovells, acting for Kassenärztliche Vereinigung Hessen (KVH), reported that the Frankfurt Regional Court held the English plan was not capable of recognition under German law and ordered repayment of KVH’s claims. The plan, promoted by Aggregate Holdings and backed by Fidera, had been approved by the English High Court in March 2024 with overwhelming creditor support (97.3% by value of senior creditors) and €190 million of new super-senior funding. It sought to extend maturities and subordinate claims, including KVH’s, after Aggregate shifted its COMI to London to access the English regime.

As Kirkland & Ellis highlight, the German decision was made in expedited proceedings without expert evidence, and a full hearing (with the developer expected to appeal) will follow. Even so, the interim refusal has drawn significant press attention — including Bloomberg and Handelsblatt — given its potential to disrupt established market practice.

For UK insolvency professionals, the issue is less about legal precedent at this stage and more about practical risk. If a local court refuses to recognise an English plan, dissenting creditors with German law claims may gain unexpected leverage. Real estate projects are particularly exposed, since debt and security often sit firmly under local law. The ruling also brings COMI shifts and forum shopping back into focus — themes already live in recent cases — and underlines the need for advisers to reassess recognition strategies and prepare contingency options where local courts may take a different view.