Shoosmiths wins landmark restructuring plan case

Shoosmiths has made headlines by successfully advising Madagascar Oil, a prominent onshore oil producer, in a landmark restructuring plan that redefines the landscape of cross-border corporate governance. The case involves a complex dispute between two major lenders, marking the first known instance of a “one versus one” restructuring plan aimed at resolving a corporate stand-off. This innovative legal approach leveraged the UK’s restructuring plan regime, showcasing how legal strategies can reshape industry practices.

Leading the Shoosmiths team, Partner Lee Sennett, along with Legal Director Hayley Çapani, expertly navigated the contentious aspects of the case. Their team comprised professionals from various departments, including Senior Associate Lucy Sanderson and Associates Yasmin King and Aadil Qureshi, ensuring a comprehensive approach to the challenges posed by the conflict. Additionally, the collaboration with Mark Phillips KC and Matthew Abraham from South Square, as well as financial advisors from Grant Thornton and FRP Advisory, fortified their strategy, resulting in a robust and coordinated effort.

"This was a complex and sensitive matter, and we’re pleased to have supported Madagascar Oil in navigating it successfully. We’re looking forward to seeing the business move forward with its planned growth," remarked Sennett and Çapani. They added, "Our focus was on delivering a solution that met the client’s commercial objectives while also helping to shape the evolving restructuring landscape. The close case management by the Court really helped with achieving this aim."

The court's judgment, delivered in June 2025, is set to influence future restructuring cases and market practices significantly. It underscores Shoosmiths’ credentials in delivering commercially focused solutions in contentious restructuring scenarios. The ruling indicates a judicial shift towards minimising the impact of out-of-the-money creditor objections, demonstrating Shoosmiths' adeptness in employing cross-class cram down mechanisms. This triumph solidifies Shoosmiths' position as a leader in innovative restructuring plans that unlock value and resolve complex disputes in the corporate sector.