Jurisdiction(s):
United Kingdom

Re Mannarest: administration from liquidation under IA 1986 Sch B1 para 38; court allows unsecured distributions; liquidation not terminal (England and Wales)

Published on: 10 March 2026

Published by a LexisNexis Restructuring & Insolvency expert

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Table of contents

What are the practical implications of this case?
What was the background?
What did the court decide?
Case details

Article summary

Re Mannarest Ltd [2026] EWHC 326 (Ch)

What are the practical implications of this case?

So far as is currently known, this appears to be the first reported decision under IA 1986, Sch B1, para 38. The judgment emphasises the court’s (quite proper) prioritisation of creditors’ interests and questions the long-held orthodoxy that liquidation is the point of no return. It confirms that, when the circumstances align, liquidation is not necessarily terminal. IA 1986, Sch B1, para 38 now stands as a factor that must be firmly weighed in any rescue or restructuring exercise—particularly where, as in situations of this kind, preserving the company’s existence produces clear benefits and creditors’ interests are fully safeguarded. In such circumstances, the provision sits squarely among the considerations that inform rescue and restructuring strategies.

What was the background?...

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