Jurisdiction(s):
United Kingdom

Re Cineworld Group plc: Administration order under IA 1986 Sch B1 para 11; English court’s reliance on US Chapter 11 scrutiny in cross‑border restructuring

Published on: 13 February 2024

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Re Cineworld Group plc [2023] EWHC 3006 (Ch) What are the practical implications of this case?

The judgment provides a thorough analysis and timely reminder of the applicable jurisdictional gateways in paragraph 11 of Schedule B1 to the Insolvency Act 1986 (IA 1986) for granting an administration order. In the context of a major global restructuring, it is noteworthy that Mr Justice Leech attached substantial weight to the observations of the US Bankruptcy Judge who had rigorously examined the Chapter 11 reorganisation plan, the depth of that review, and the plan’s backing from a large majority of creditors. The desirability of the plan’s success for both the US Bankruptcy Court and creditors globally materially influenced the application for an administration order. Where an administration application is pivotal to the effectiveness of a broader, cross‑border restructuring or reorganisation, the English court is prepared to treat overseas judicial scrutiny and approval of the overarching plan as highly persuasive when determining the relevant relief within its own jurisdiction. This approach underscores the court’s willingness to support coordinated, international solutions where foreign court oversight and creditor support have been clearly demonstrated...

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