The Restructuring Plan (RP) procedure was one of the Government support plans and was introduced in June 2020.
Hurricane Energy, which is facing financial difficulties for several reasons, has been the first company to have their application for a RP to be denied by the Court. The directors are now considering whether to appeal the decision.
Making his decision, the judge commented that Hurricane was still making money and if the restructuring plan went ahead the shareholders would lose out while the bondholders would recoup at least some of their investment.
It will be interesting to see what happens with Hurricane Energy as the first company to be denied a RP. Watch this space ….
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