The recent English High Court judgment relating to the
restructuring of IMO Car Wash is a landmark for the industry.
Justice Mann sanctioned schemes of arrangement for companies in
the IMO group, the world's largest car wash company, clarifying
in the process certain of the issues surrounding valuation that
had been left open in the earlier MyTravel case. In
particular, it is now clear that a "going concern" valuation
rather than a "break up/liquidation" valuation is appropriate
for assessing the respective interests of competing creditors
in disputed restructurings of this type. However, there remains
doubt as to how a going concern valuation is to be assessed as
each case will turn on its specific facts.
One point that will attract the interest of the industry is
the willingness of the High Court to consider the specific
details of a proposed scheme of arrangement in isolation of the