Davis Polk partners and co-leads of our London restructuring practice Jifree Cader and Mark Knight discussed with PitchBook how the UK’s Part 26A restructuring plan (RP) process has become a viable option for US-linked debtors seeking an alternative to chapter 11. 

“We are at an inflection point. UK RPs are now considered a genuine alternative to pre-packaged chapter 11 for U.S. companies,” Jifree explained.  “RPs are now very much on the table as a potential solution.”

The article highlighted a recent opinion by Chief Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York, which mitigated concerns regarding debtors manipulating their Centre of Main Interests (COMI) to circumvent U.S. bankruptcy protections. The opinion recognized that UK RPs offer robust, fair and meaningful engagement for creditors. 

Mark noted that the opinion was helpful because it confirms that RPs can provide an effective restructuring solution for US companies — provided appropriate guardrails are in place to ensure the cooperation of the U.S. bankruptcy court. “In practice, advisors will need to work closely together on both sides of the pond to respect these guidelines when designing and implementing RPs for US companies,” he explained.  

However, Jifree noted that not every situation calls for the same approach. “Some distressed companies need a global stay on creditor actions that is only available through Chapter 11 proceedings, for instance.”

Where that is not a requirement, RPs may offer a more targeted path. “Chapter 11 is a fantastic tool, but in such cases, it’s akin to using a sledgehammer to crack a nut,” Mark added. “RPs are particularly well suited to cases that enjoy relatively broad creditor support and a surgical balance sheet restructuring rather than an operational overhaul.”

“UK restructuring plans back on radar as US debtors look beyond Chapter 11,” PitchBook (July 28, 2026) (subscription required) 

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