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Re Chaptre Finance Plc: proving CA 2006 s 901G ‘no worse off’ requires CPR Part 35 expert evidence; opponents should cross-examine and adduce their own reports (England and Wales)

Published on: 29 November 2024

Published by a LexisNexis Restructuring & Insolvency expert
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Re Chaptre Finance Plc [2024] EWHC 2908 (Ch) What are the practical implications of this case?

For a cross-class cram-down, the company proposing it must prove both statutory limbs in CA 2006, s 901G. Such applications typically hinge on expert opinion. Miles J was unequivocal: valuation and outcome analyses relied upon must comply with CPR Part 35. He noted that, had Chaptre Finance Plc relied only on the opinion material filed for the convening hearing, it would probably have failed to satisfy the no worse off condition. He likewise rejected the opponents’ half-way house, where they sought to attack Chaptre Finance Plc’s belated CPR Part 35 reports using nothing more than a letter of opinion. Where creditors wish to challenge expert evidence on either s 901G condition, they should:

  • seek permission to cross-examine the applicant company’s expert(s); and
  • file their own CPR Part 35-compliant expert reports.

Opposing creditors should also formally set out their stall as soon...

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