On Friday 9 May the Chancellor of the High Court launched a consultation on a replacement for the current Practice Statement in relation to schemes of arrangement and restructuring plans (under Part 26 and 26A of the Companies Act 2006, respectively). The existing Practice Statement was introduced (as a replacement for an earlier Practice Statement relating to schemes of arrangement) in 2020, concurrent with the introduction of the new Part 26A procedure. It is now to be revised “to take into account nearly five years' experience of the use of restructuring plans, with a view to improving the efficiency and fairness of the process under Part 26A”.

The draft Practice Statement reflects the developing treatment by the court of contested restructuring proceedings as civil litigation, building on a line of judgments in restructuring plans such as Consort Heathcare and Chaptre Finance. The objective of the existing Practice Statement is primarily to enable issues of jurisdiction and class composition to be identified and resolved at the convening hearing. The revised draft adds a significant second objective: facilitating “the early identification and active case management of contested issues, with a view to such issues being resolved in an efficient and orderly manner which involves a proportionate allocation of the Court's time and resources”.

Notable new points in the revised draft Practice Statement include:

• an admonition that both applicants and opponents of schemes or plans should bear in mind the Court's resources and seek to cooperate to avoid timetabling pressures and facilitate the orderly resolution of proceedings;
• a requirement for the applicant to file a listing note when issuing its claim form, setting out among other things an indicative timetable for the overall proceedings and a description of any matters likely to impact the timetable, or give rise to contested issues;
• a detailed list of issues to be identified by the applicant in its evidence to be filed for the convening hearing, including matters to be dealt with where it is envisaged that the Court may be asked at the sanction hearing to exercise its power to “cram-down” an objecting class in a restructuring plan; and
• provisions regarding the Court's case managment powers, including with regard to timetabling, disclosure, costs and expert evidence.

Submissions on the draft are invited by Friday 13 June 2025, with the replacement Practice Statement to be issued by the end of July 2025.