Lessons from Petrofac and Waldorf—the impact on English restructuring plans

The Petrofac judgment marked a significant milestone in the continuing development of the English restructuring plan, being only the second occasion on which a sanctioned restructuring plan has been overturned by the Court of Appeal (following the Adler case in 2024). In turn, much the reasoning behind the reversal of Petrofac plan had a significant bearing on the High Court’s ensuing rejection of the Waldorf plan. The issues considered by the courts and the guidance handed down from the bench in both cases have come under considerable scrutiny from the market, and stakeholders will be keen to understand the implications if they are considering making use of the restructuring plan tool.

Our podcast contributors discuss the specific commercial matters at play in the Petrofac case and why the Court of Appeal came to its decision; the impact of Petrofac on the Waldorf case, what amounts to a “fair” allocation of the benefits generated by a restructuring; how companies can strengthen their evidence to justify such allocations; and the merits or otherwise of possible alternatives to a restructuring plan.

For further details, we also recommend reading our previous article setting out a thorough consideration of the Petrofac Court of Appeal judgment and its implications.