Victoria PLC is the latest UK company to execute an aggressive LME, recently announcing plans to elevate certain of its creditors at the expense of others.

Perhaps unusually, the UK-based carpet maker has not been coy about its plans, with speculation regarding a potential uptier circulating since earlier this year. Now that the plans for this transaction have become public, we expect the typical litigation threats from dissenting creditors to emerge.

Despite previous successes by non-participating creditors claiming that the transaction violated the terms of the notes (such as in Hunkemoller), we believe their chances of prevailing in this case are limited.