Potential unenforceability of undertakings to exclude a creditor from a future restructuring

22 Oct 2024

In a recent English decision, debtor companies undertook to certain landlord creditors to exclude them from subsequent court-assisted restructuring plans, if they were proposed. The debtor companies later proposed such restructuring plans. The English court approved those restructuring plans and declined to enforce the undertakings given to those landlord creditors. Those landlord creditors’ claims were therefore subject to compromise under the restructuring plans. Similar reasoning may apply in Singapore law, so creditors may need specialist restructuring advice if faced with a similar situation. Directors Mohan Gopalan and Mitchell Yeo, and Associate Ian Choo discuss Re Cine-UK Ltd and others [2024] EWHC 2475 (Ch) in this update.

You may read the full update here.