UK Courts Tighten Rules for Part 26 and 26A Restructuring Plans

A new Practice Statement on schemes of arrangement and restructuring plans under Parts 26 and 26A of the Companies Act 2006 will take effect on 1 January 2026, with significant implications for companies, creditors and practitioners.

Replacing the 2020 guidance, it introduces stricter discipline and efficiency to a process that has become central to UK restructurings, particularly since the advent of the Part 26A “cross-class cram-down” during the pandemic. Applicants are expected to identify jurisdictional and class issues at the outset to conserve limited judicial resources.

Companies must now file a “listing note” at the start of proceedings, setting out timetables for convening and sanction hearings, likely disputes and any urgency factors. A “practice statement letter” must also be sent to affected creditors or members in advance, clearly summarising the proposal and providing sufficient time for them to seek advice and decide whether to object.

At convening hearings, applicants must produce a final explanatory statement and supporting evidence, with judges empowered to refuse a meetings order if documents are deficient. The court is encouraged to case-manage proactively, limiting issues, tightening timetables, and requiring disclosure through data rooms.

Where a cram-down is sought under Part 26A, companies must now give detailed evidence of creditor engagement, objections raised and alternatives considered, ensuring fairness can be properly scrutinised.

Most restructuring applications will have to be heard by High Court judges, who are encouraged to retain conduct of cases through to sanction.

Reflecting concern about the pressure Part 26A cases place on the courts, the new rules emphasise early issue-spotting, clear notices and tighter case management to reduce tactical disputes and keep restructurings on track.

Read the Practice Statement HERE.