Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Part 26A restructuring plan definition

What does Part 26A restructuring plan mean? A court‑supervised tool to restructure a distressed company’s liabilities by compromising creditor and/or member rights to restore viability. It is the statutory “restructuring plan” in Part 26A of the Companies Act 2006, introduced by the Corporate Insolvency and Governance Act 2020. The company must have encountered, or be likely to encounter, financial difficulties affecting its ability to carry on business as a going concern, and the plan must address those difficulties. Creditors and members vote in classes at court‑convened meetings. Approval requires at least 75% in value of each approving class; there is no headcount (numerosity) test. Crucially, the court may sanction...

Ending administration: timelines, extensions, court termination, creditor challenges (improper motive), dissolution (para 84), CVL (para 83), Part 26A plans, MVL route, notices and discharge—England and Wales

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

There are several ways in which an administration can come to an end depending on the specific circumstances of the administration.

The default position is that an administration should not run for more than 12 months; unless a different exit is adopted, it terminates automatically at the end of that period. Once the term has expired, former administrators lack authority to exercise any powers conferred on administrators under the Insolvency Act 1986 (IA 1986). Steps taken while wrongly assuming the appointment is still in force may expose them to personal liability for trespass to or interference with the company's property and to breach of duty/misfeasance proceedings. Where extra time is genuinely required, an extension must be sought for good cause—such as the need to pursue litigation for the estate—see Practice Note: How can an administrator apply to extend the period of automatic termination of administration?

Otherwise, the company may:

Revert to the control of its directors
Be dissolved
Enter an alternative process, such as liquidation

These alternatives are explored below...

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Web page updated on 29/05/2026

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