East Africa: Restructuring Quarterly Bulletin – March 2025

In the March edition of our quarterly restructuring bulletin, we highlight the restructuring developments in the following jurisdictions:

KENYA

Economic updates

In February 2025, the CBK, pursuant to its statutory mandate under the Central Bank of Kenya Act and the Banking Act, sustained its accommodative monetary policy stance by implementing a targeted reduction of the policy interest rate by 25 basis points. This regulatory intervention was executed following a comprehensive evaluation of prevailing macroeconomic indicators, inflationary pressures and liquidity conditions within the financial system. The measure was expressly designed to stimulate lending by commercial banks, enhance market liquidity and foster broader economic growth while ensuring that the principles of financial stability and prudential regulation are upheld.

To read more, click here.

Corporate updates

Highlights:

We note that the following insolvency processes have been undertaken in January and February 2025:

• there were two (2) applications for company voluntary arrangements;
• there were four (4) petitions filed for liquidation of companies by the court. Notably, there were no applications filed for administration by the court;
• there were three (3) companies placed under administration; and
• there were three (3) companies placed under voluntary liquidation.

To read more, click here.

We also note that there have been various updates in the press particularly in relation to companies under administration and liquidation.

 In addition, the Registrar of Companies issued a gazette notice announcing the planned deregistration of seventy-seven (77) companies based on non-compliance. Deregistration will strip the companies of their legal standing, affecting employees, creditors and business partners with ongoing contracts.

Distressed companies in the press

• Road’s contractor, Put Sarajevo General Engineering Company, which thrived during the late president Moi’s era, has been placed under liquidation for failing to settle a KES 800 million debt to three creditors. The contractor was placed in liquidation by the court following a petition filed by Hamilton Harrison & Mathews. The High Court, following an analysis of the petition, declared that the company was insolvent and made an order for the appointment of the Official Receiver as the liquidator of the company’s properties. To read more, click here.
• Giant cereals manufacturer Proctor & Allan has been placed under receivership over a KES 3.7 billion bank debt. We understand that the cereals manufacturer is hoping for an unnamed buyer who is reportedly willing to put in USD 10 million (about KES 1.2 billion) to revive the company and repay the debt owed to KCB Bank Kenya. To read more, click here and here.
• One of Kenya’s oldest and largest truck, coach and bus bodybuilders, Labh Singh Harnam Singh Limited (LSHS) has been placed under administration over a KES 1 billion bank debt owed to KCB Bank Kenya, joining a growing chain of companies that have suffered a similar fate in a tough economy. According to the notice, PVR Rao and Swaroop Rao Ponangipalli have been appointed as joint administrators of the company, effective February 4, 2025. The company has now become one of several automotive businesses that have halted their operations in the country due to industry challenges. Recently, CMC Motors Group declared a phased withdrawal from the East African market, pointing to obstacles like economic pressure, currency depreciation and rising operational costs. To read more, click here.
• Kenya’s only vehicle manufacturer, Mobius Motors, which was previously placed under voluntary liquidation in August 2024, has now been fully acquired by Middle East-based investment and technology firm, Silver Box. To read more, click here.
• The High Court has extended the appointment of the Official Receiver as the administrator of cash-strapped Multiple Hauliers (E.A) Limited for another six (6) months. To read more, click here.
• The Official Receiver has been appointed as the liquidator of Countryside Dairy Limited with effect from 21 November 2024 following a notice published in the Kenya Gazette on 10 January 2025. The notice also invited all creditors to a creditors’ meeting held on 15 January 2025 at the Office of the Official Receiver and invited the creditors to submit their claims through the Official Receiver’s platform. The company was previously under administration under the management of the Official Receiver. To read more, click here.
• Diana Nduku Mumo has been appointed as interim liquidator of the financially distressed Xplico Insurance Company, marking a significant step in the troubled insurer’s long-running financial woes. To read more, click here.
• Kenyan tech-led consumer credit provider Lipa Later was placed under administration not long after it secured at least KES 1.998 billion in equity and debt financing over three rounds for expansion into new African markets. The buy-now-pay-later platform partners with retailers to allow shoppers to pay in instalments. Joy Vipinchandra Bhatt of Moore JVB Consulting has been appointed as the administrator. To read more, click here.
• Investment firm TransCentury has appointed KPMG as it seeks a plan to clear a KES 2.5 billion (USD 20 million) loan due to Equity Bank Kenya, and piling interest charges, amid a battle to avoid going under administration over the defaulted facility. The disclosure comes as the High Court extended an order blocking Equity Bank’s appointed administrators (George Weru and Muniu Thoithi from PwC) from acting as administrators of the company and its affiliate East African Cables. To read more, click here.
• The multi-billion-shilling 14 Riverside Complex, which houses the Dusit D2 hotel in Nairobi, was set to be auctioned in April 2025, following a decade-long court battle. However, Cape Holdings Limited (Cape Holdings), the property owner, successfully blocked the auction by filing an application with the High Court. In recent developments, the High Court has issued a temporary injunction, halting the sale on the grounds that the notice of sale was not issued as required by law. Cape Holdings argued that the sale period was improperly shortened from 59 days to 21 days and that the property had not been revalued since November 2020. The High Court has scheduled a hearing for 9 May 2025, to further consider the case. To read more, click here and here.

Recent case law developments

Kenya Revenue Authority v. Dream Dressing and Household Items Trading Co. Limited & 3 others (2024) – Implications of corporate deregistration and tax enforcement

In this case, the High Court addressed an application by the Kenya Revenue Authority (KRA) to reinstate Dream Dressing and Household Items Trading Co. Limited (Company) to the Companies register. The Company was struck off the register in January 2022 for failure to comply with statutory requirements, including the submission of annual returns and tax filings. At the time of being struck off, the Company had accumulated an amount of KES 125,809.768.43 in unpaid taxes which continued to accrue interest and penalties. As such, KRA argued that the Company’s deregistration hindered its efforts to recover outstanding taxes, and therefore, it was crucial for the company to be reinstated to facilitate enforcement of these obligations.

The High Court’s decision to restore the Company to the register emphasises the importance of maintaining compliance with regulatory requirements, particularly tax obligations. To read more, click here.

MAURITIUS

Recent regulatory updates

Bank of Mauritius raises key rate to 4.50% to curb inflation risks

On 4 February 2025, the Bank of Mauritius (BOM) announced that it had raised the key rate from 4.00 % to 4.50 % per annum. The BOM explained that the increase in the key rate was motivated by the need of the BOM to address potential external headwinds that could lead to increased global inflation and further exchange rate pressures and to ensure that inflation expectations are solidly anchored in Mauritius. Such a decision supports the BOM’s mandate of maintaining price stability and promoting orderly and balanced economic development. To read more, click here.

Recent developments -case law

Obligations of guarantors in an insolvency

In The Mauritius Development Investment Trust Co Ltd v. Wong Hee J. & Anor 2025 SCJ 9, the Supreme Court addressed whether guarantors remain liable for repaying a loan after the principal debtor enters insolvency and is discharged from their liabilities.

The Mauritius Development Investment Trust Company Limited (MDIT) had loaned MUR 15 million to Super Construction Company Limited (SCC), whose directors personally guaranteed repayment. SCC later entered voluntary administration, executing a Deed of Company Arrangement (DOCA) that limited creditor repayments to 30% and released guarantors upon settlement. SCC paid MUR 4.53 million to MDIT, but MDIT pursued the guarantors for the remaining amount.

The Supreme Court held that under section 269(2) of the Insolvency Act 2009, a guarantor’s liability is not discharged by the release of the principal debtor. The Supreme Court noted that the clause of the DOCA which aimed to release the guarantors from liability was contrary to section 269 of the Insolvency Act, the latter being a matter of public order and thus the said clause of the DOCA had no effect. The guarantors have since appealed the decision, and a ruling from the Court of Appeal is awaited.

TANZANIA

Economic overview

• Economic growth in Mainland Tanzania is expected to remain robust, with real GDP growth averaging 6% in the second half of 2024/25, driven by agriculture, construction, transport and logistics services. To read more, click here.
• The Bank of Tanzania’s Mid-Year Review 2024/25 Monetary Policy Statement indicates that the headline inflation rate was around 3%, below the medium-term target of 5% and consistent with East African Community and Southern African Development Community convergence criteria. To read more, click here.
• The Tanzanian Shilling has depreciated by 8.9% this year since January 2025. However, this is considered to be a short-term pressure on the currency caused by a widening current account deficit and liquidity constraints as a result of rising imports and increasing public debt linked to major infrastructure projects. Nonetheless, these infrastructure investments are expected to yield long-term economic benefits. To read more, click here.
• Tanzania is setting a goal to attract 1,500 new investment projects by December 2025, to become one of the top five investment destinations in Africa. The targeted sectors for this initiative include manufacturing, agriculture, transportation, clean energy, tourism, mining and services. Interestingly, the Tanzania Investment Centre has registered 901 projects worth USD 9.21 billion as of December 2024. To read more, click here.

Corporate updates

• Tanzania’s banking sector has experienced a notable decline in non-performing loans (NPLs), signalling enhanced financial stability and improved credit access for businesses and individuals. Leading banks such as NMB, CRDB, Stanbic, and Standard Chartered have reported significant reductions in their NPL ratios, with Standard Chartered’s dropping from 3.90% in December 2023 to 0.20% in December 2024. This positive trend is attributed to factors including a stable business environment, responsive regulatory oversight, and strategic measures taken by banks, such as converting dollar-denominated loans to Tanzanian shillings to mitigate forex volatility. The Bank of Tanzania continues to advocate for maintaining NPLs below 5% of total gross loans and encourages the adoption of technology-driven credit risk assessments to sustain this progress. ​To read more, click here.
• We note that there are no public reports of major companies in distressed conditions, or involved in insolvency proceedings, which may be a signal of a positive business environment in Tanzania.

Regulatory updates

Tanzania considers revising telecom listing law to ease financial strain on operators

On 24 February 2025, the Government expressed its willingness to engage in discussions with Mobile Network Operators (MNOs) to review the law that mandates telecom companies to list at least 25% of their shares on the Dar es Salaam Stock Exchange. The law, introduced in 2017, was aimed at increasing transparency and expanding investment opportunities in the telecom sector. While Vodacom complied, there have been concerns regarding the financial burden this requirement places on smaller or financially distressed telecom companies.

A potential revision could ease compliance challenges, reducing the risk of financial strain, insolvency proceedings, or forced restructuring for distressed operators, and fostering a more favourable business environment. To read more, click here.

UGANDA

Regulatory updates – Government takeovers and intervention in business rescue effort

• Appointment of a New Governor and Deputy Governor of Bank of Uganda

After a three-year vacancy, the President of Uganda appointed a substantive Governor and Deputy Governor for the Bank of Uganda. This appointment is expected to stabilise monetary policy, restore investor confidence, and enhance the coordination between fiscal and monetary policies, addressing concerns raised during the leadership void. To read more, click here.

• Umeme Limited Takeover

Umeme Limited (Umeme), Uganda’s primary electricity distributor, has revised its expected compensation from the Ugandan government (GoU) at the end of its 20-year concession in March 2025. The anticipated buyout amount has decreased from USD 407 million in 2022 to USD 339 million in 2023, primarily due to capital recoveries and amortisation of investments. This figure was projected to further decline to USD 283 million by March 2025. The GoU in 2022 indicated that it would not renew the concession and would take over the distribution of electricity across the country through its agency the Uganda Electricity Distribution Company Limited (UEDCL).

Accordingly, the GoU intends to make a capital investment into UEDCL to improve the quality of service and to settle a claim made by Umeme Limited for capital investment made and not recovered by the end of the concession. To achieve this, the GoU intends to secure USD 50 million through internal borrowing, which has already received Parliamentary approval. To read more, click here and here.

• Additional financing for the International Specialized Hospital of Uganda at Lubowa and the Atiak Sugar Factory

Parliament has approved a supplementary budget of UGX 4.2 trillion (approximately USD 1,132,359,900), with UGX 298 billion (approximately USD 80,333,843.79) allocated for the International Specialized Hospital of Uganda at Lubowa and UGX 115 billion (approximately USD 31,001,315.55) for the Atiak Sugar Factory. The hospital project, which has faced delays and public criticism, has already seen significant investment, while the Atiak Sugar Factory, a joint venture with Horyal Investments, has struggled despite past government funding. To read more, click here and here.

• Uganda Registration Services Bureau Launches Program to Curb High Business Failure Rate

The Uganda Registration Services Bureau (URSB) through its Directorate of Insolvency and Receivership, has launched the Corporate Rescue and Aftercare Support Program 2024/2025 to address the country’s high rate of business failures, where one business reportedly closes for every new one opened. The initiative seeks to build entrepreneurs’ capacity in financial literacy, corporate governance, and strategic management to enhance business resilience and sustainability.

The program also introduces corporate rescue mechanisms available under Ugandan law and provides a platform for sharing practical business growth strategies. It targets a wide range of stakeholders, including business owners, policymakers, regulators, and academia, and aligns with Uganda’s broader goals under the National Development Plan III to promote private sector-led economic growth and job creation. To read more, click here.

Corporate updates

The Uganda Registration Services Bureau (URSB) recently struck more than 180,000 companies off the Company Register for failing to meet statutory filing requirements, particularly for not submitting annual returns over the last five years. Of the companies struck off, approximately 10,000 did not apply for restoration and have been permanently removed from the Register.

Legislative updates

Mortgage Refinance Institutions Bill, 2025

The Mortgage Refinance Institutions Bill, 2025 (Bill) was recently tabled in the Ugandan Parliament. The Bill aims to regulate the establishment of mortgage refinancing institutions, define the role of the central bank in their regulation, and address issues such as corrective actions and liquidation. Currently, there is no law governing mortgage refinance institutions in Uganda, which has led to financial institutions relying on short-term borrowing, causing a maturity mismatch. This mismatch results in unfavourable mortgage terms, such as high interest rates and short payment durations, leading to high default rates and foreclosures.

The Bill seeks to address these issues by allowing mortgage refinance institutions to provide long-term funding, enabling primary mortgage lenders to offer more affordable mortgages with better terms. The enactment of this Bill is expected to improve access to housing and facilitate affordable housing in Uganda. The Bill is now under consideration by the Parliamentary Committee on Finance, Planning, and Economic Development. To read more, click here.

Recent developments – Case law

Commercial court ruling on abuse of bankruptcy proceedings and corporate compliance

In the case of Ndawula Ronald and Hiraa Traders (U) Limited Miscellaneous Application No. 2159 of 2024, the Applicant sought to have a Bankruptcy Order issued against him on 30 November 2020 annulled, revoked or set aside. The grounds for his application were that the Respondent, a private limited liability company that filed the bankruptcy petition did not exist anymore having been struck off the Companies Register. The Applicant also argued that after obtaining the bankruptcy order the Respondent had not carried out the mandatory steps that ought to follow a bankruptcy order.

The Commercial Court (Court) found that it would decline to maintain bankruptcy proceedings and ultimately dismiss them if it considered them to be an abusive attempt by a petitioner to use their continuing existence to effect payment of their debt. The Court found that since the Bankruptcy Order was issued in 2020, the Respondent had never sought to have the Official Receiver appointed as an interim receiver of the estate of the Applicant for the preservation of his estate as a bankrupt and to distribute the estate amongst creditors as advantageously as is reasonably possible.  The Court also found that the Applicant was unfairly hindered from starting over his life but also frustrated other creditors. The Court ultimately found that such a “warehoused” claim ought to be struck out unless compelling reasons justify otherwise.

The Court also found that the Respondent company had been struck off the Register of Companies for failure to make statutory filings for five years. The Court ruled that as in the case of liquidation, a company struck off the Register, unless rectification is done within twelve months of being struck off ceases to exist as a legal person and is therefore unable to trade or carry out any legal functions of a company. The case underscores the need for petitioners to ensure legal compliance and timely action when initiating insolvency proceedings.

GLOBAL RESTRUCTURING UPDATES

This section provides a regional breakdown of key regulatory and corporate developments in restructuring and insolvency in the UK, Germany, France and China. Here are some of the most notable updates:

Europe

United Kingdom (UK)

Company updates

• In January 2025, UK company insolvencies consisted of 269 compulsory liquidations, 1,546 creditors’ voluntary liquidations (CVLs), 142 administrations and 14 company voluntary arrangements (CVAs). While CVLs and administrations increased from December 2024, compulsory liquidations and CVAs declined.
• As financial strains persist into 2025, insolvency practitioners (IPs) and restructuring experts are seeing growing interest in formal insolvency solutions, including administrations, CVAs, and pre-pack sales, as struggling businesses seek viable paths forward amid ongoing economic uncertainty. To read more, click here.
• Beaverbrooks, a jewellery retailer, announced plans to close 7 of its 89 stores in early 2025 due to commercial non-viability. To read more, click here.
• Poundland, a discount retailer, is exploring a potential sale via its parent company, Pepco, amid rising operational costs, including increased employer National Insurance Contributions and changes in the national minimum wage. To read more, click here.
• Sainsbury’s, one of the UK’s leading supermarket chains, announced in January its plans to cut 3,000 jobs. The move is part of a broader cost-cutting strategy in response to rising operational expenses, including increased National Insurance contributions and higher wages mandated by recent government policies. To read more, click here.

Regulatory updates

• The Information Sharing (Disclosure by The Registrar) Regulations 2024 (Regulations)

The Regulations, effective from 20 December 2024, empower the Registrar of Companies to share non-public information with IPs and official receivers. This access assists IPs in making or determining whether to make certain claims in insolvency proceedings, including those related to fraudulent and wrongful trading, transactions at an undervalue, preferences, or extortionate credit transactions. To read more, click here.

• The Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024

The UK government, through the Sanctions (EU Exit) (Miscellaneous Amendments) (No. 2) Regulations 2024 enacted on December 5, 2024, has introduced new obligations for IPs regarding sanctions reporting and licensing.

Effective from 14 May 2025, IPs are mandated to report to the Office of Financial Sanctions Implementation (OFSI) if they know or suspect that a person is a designated individual under UK sanctions or has breached specific sanctions provisions, with such knowledge arising during their professional activities. Failure to comply with these reporting requirements constitutes a criminal offence and may lead to regulatory enforcement action. To read more, click here.

Recent case law developments – UK

• In the matter of Thames Water Utilities Holdings Limited and in the matter of the Companies Act 2006

The UK Court of Appeal has upheld Thames Water’s £3 billion interim rescue plan, dismissing challenges from environmental groups, junior creditors, and other stakeholders. This decision allows the heavily indebted utility company to proceed with its refinancing efforts to stabilise its financial position without impacting customer bills.

While the ruling marks a significant step in Thames Water’s restructuring, some junior creditors are considering further legal challenges, including a potential appeal to the Supreme Court. To read more, click here.

• Commissioners for His Majesty’s Revenue and Customs v Purity Ltd[2024] EWHC 2965 (Ch) (22 November 2024)  – Public Law Defenses in Winding-Up Petitions

In January 2025, the UK High Court (Court) delivered its first ruling under section 85 of the Finance Act 2022 (Act), which empowers HM Revenue and Customs (HMRC) to petition for the winding up of companies when deemed expedient in the public interest to protect revenue.

In this landmark case, HMRC sought to wind up Purity Limited on these grounds. The Court acknowledged that public law defences are available to companies facing such petitions, even though the Act does not explicitly mention them. To read more, click here.

• Re Chaptre Finance PLC[2024] EWHC 2908 (Ch) – Compliance with civil procedure rules in restructuring proceedings

This case stresses compliance with Civil Procedure Rules in restructuring, requiring expert reports to meet clear standards. It also highlights the need for active creditor participation, as courts may uphold unchallenged expert evidence, making substantive creditor challenges crucial.

• Kireeva v Bedzhamov [2024] UKSC 39 (20 November 2024) – UK Supreme Court upholds immovables rule in Russian bankruptcy case

In January 2025, The UK Supreme Court ruled that Russian bankruptcy proceedings could not apply to property in England due to the “immovables rule,” which dictates that land rights are governed by local law. While recognising the Russian bankruptcy order, the Court denied enforcement over a London property, emphasising that any change to this principle requires legislative action. To read more, click here.

• Liberty Steel Group restructuring plan

Liberty Steel Group, a global steel and mining company, faced delays in its Part 26A restructuring plan as an English court postponed its convening hearing in December 2024 and its sanction hearing in February 2025. The adjournments allowed further negotiations with creditors linked to Greensill Capital, a financial services company, highlighting the complexities of the restructuring and the court’s cautious approach to ensuring stakeholder support. To read more, click here.

Germany

​ In 2025, Germany is seeing a sharp rise in corporate insolvencies, the highest since the 2009 financial crisis, driven by high energy and labour costs, supply chain disruptions, and weak export demand. Key sectors affected include automotive, mechanical engineering, and construction — the latter experiencing a 53% increase in bankruptcies. The central bank of Germany, Bundesbank, warns that ongoing structural challenges may worsen default risks. Overall, the country is facing a challenging economic environment marked by both short-term pressures and long-term structural shifts. To read more, click here and here.

Recent case law developments – Germany

Oberlandesgericht Celle (Court of Appeal Celle), Decision of 2 October 2024 – Docket No. 3 ORs 18/24

In January 2025, the German Court of Appeal held that attorneys representing multiple creditors in insolvency proceedings must avoid conflicts of interest to prevent criminal liability for breach of trust (Parteiverrat). If a clear conflict arises, the attorney must withdraw from representing conflicting interests. While creditor pooling is a common and efficient practice in large insolvency cases, the ruling underscores the legal risks for attorneys and their clients. To read more, click here.

France

According to a January 2025 report by BPCE economists, a major French banking group in France is projected to experience an unprecedented 68,000 business failures in 2025, marking an all-time high. This surge is attributed to sluggish economic growth, reduced investments, and prevailing political uncertainties. Notably, small and medium-sized enterprises (SMEs) and medium-sized companies have been disproportionately affected, with insolvencies in these groups increasing by over 50% between 2019 and 2024.

The real estate and construction sectors are particularly impacted, witnessing a 36% rise in insolvencies compared to pre-COVID levels, especially among estate agencies and property development firms. Regional disparities are evident, with areas like Aquitaine, Poitou-Charentes, Midi-Pyrénées, Île-de-France, and Rhône-Alpes being significantly affected. Economists warn of a contagion effect, where insolvencies among SMEs and intermediate-sized enterprises could adversely impact smaller subcontractors. To read more, click here.

Notable restructuring in France

Altice France, a major telecommunications company, has finalised a comprehensive debt restructuring involving over EUR 24 billion. As part of the deal, senior secured creditors will acquire about a 31% equity stake, while junior debtholders will receive around 14%. This restructuring is one of Europe’s largest recent liability-management exercises. To read more, click here.

United States of America (USA)

Corporate updates

In the first quarter of 2025, US corporate bankruptcies have continued to climb, with 539 commercial Chapter 11 filings in January alone — a 16% increase from the 465 filings recorded in January 2024. Notably, companies are increasingly favouring restructuring over liquidation, with reorganisations outpacing shutdowns by nearly a 2-to-1 margin. To read more, click here.

• Dollar General, the discount retailer is closing 141 locations, including 96 Dollar General stores and 45 Popshelf locations, as part of a strategic move to better serve its customers and communities. To read more, click here.
• Forever 21, a fast-fashion retailer, has filed for Chapter 11 bankruptcy for the second time in six years, citing increased competition from online retailers like Shein and Temu, as well as declining mall traffic. The company plans to liquidate its US assets while seeking potential buyers through a court-supervised sale process. To read more, click here.
• Macy’s, a department store chain plans to close 66 underperforming locations as part of its “Bold New Chapter” strategy to revitalise its business. ​To read more, click here.
• Prospect Medical Holdings, a healthcare provider, which owns Waterbury Hospital and other facilities, filed for bankruptcy, potentially affecting millions in real estate taxes owed to the city of Waterbury. To read more, click here.

China

In the first quarter of 2025, China’s restructuring and insolvency landscape has been notably influenced by developments in the real estate and logistics sector and advancements in cross-border insolvency proceedings.

• Country Garden, a major developer, is negotiating with creditors to restructure billions in debt. The company defaulted on USD 11 billion in offshore bonds in 2023 and seeks to reduce its USD 16.4 billion offshore debt by 70% through restructuring. To read more, click here.
• China Huajun Group, a conglomerate engaged in property, logistics, and transport, continued to advance its restructuring efforts. On 10 February, the company proposed a new share issuance to creditors as part of a scheme of arrangement, aimed at supporting the restructuring. Following creditor approval, a special general meeting was convened on 26 March, where shareholders approved the proposed share issuance. This marked a key milestone in the company’s efforts to stabilise its financial position. To read more, click here and here.
• Sino-Ocean Group Holding Limited, an investment company that engages in property investments and development, implemented a dual inter-conditional restructuring of its offshore debt to avoid liquidation. This strategy involved an English law restructuring plan under Part 26A of the Companies Act 2006 and a parallel scheme in Hong Kong. Both the English and Hong Kong courts sanctioned these plans in February 2025, marking a significant development in cross-border restructuring. To read more, click here.

CRYPTOCURRENCY RESTRUCTURING AND INSOLVENCY UPDATES

• In 2025, the cryptocurrency sector witnessed significant layoffs, with companies reducing their workforce by 15-20% to streamline operations amid market volatility. These companies include Messari, Payward Inc (Kraken), Sky Navis and Paxos Trust Company. To read more, click here.
• Three Arrows Capital (3AC): A Delaware bankruptcy court has authorised the liquidators of 3AC, a Singaporean crypto hedge fund, to amend their claim against FTX from USD 120 million to USD 1.53 billion. The liquidators alleged that, just two weeks before 3AC’s liquidation proceedings began, FTX liquidated USD 1.53 billion of 3AC’s assets to satisfy a USD 1.3 billion liability to FTX — a debt 3AC contends was inadequately substantiated. To read more, click here.