The Court of Appeal has overturned the High Court’s sanction of Petrofac’s restructuring plans today (1 July), siding with the company’s joint venture partners Samsung and Saipem in a ruling that may reshape how value is allocated in English restructurings.

Lord Justices Snowden, Zacaroli and Sir Christopher Floyd’s decision can be found on the 9fin platform.

The Court of Appeal overturned the sanction decision on fairness grounds, highlighting Samsung and Saipem’s argument that the benefits of the restructuring were not fairly shared, particularly regarding the equity allocated to new money providers.

The judges found a disproportionate share of equity was awarded to new money providers, while creditors whose claims were compromised contributed materially to the uplift in value but received comparatively little.