United Kingdom on Financial Restructuring

Cineworld's recent court-approved restructuring, using the "Restructuring Plan" (RP) method, highlights a growing trend in the hospitality and leisure industry. The RP allows for court-sanctioned compromises with creditors, even if some object, offering a viable alternative to insolvency. Key lessons emphasize early preparation, robust financial forecasts, and transparency in demonstrating the necessity of the RP.

The High Court approved restructuring the Portman Estate's complex trust and partnership assets into a single limited company. The decision emphasized thorough consultation, managing beneficiary conflicts, and utilizing Trustee Act 1925 powers to maintain estate integrity and flexibility.

Cornelia Zeitler is joined by her colleagues in the Frankfurt office, Holger Wolf partner from our Real Estate team and David Schrader counsel...