The UK High Court has ruled the obligations of third party guarantors are not affected by a part 26A restructuring plan being sanctioned in respect of the underlying obligations. This ruling is good news for landlords as their recourse to guarantors is preserved.
In Oceanfill Limited v Nuffield Health Wellbeing Limited and Cannons Group, UK court ruled a guarantor makes payment under the guarantee, it may be entitled to seek recovery from the tenant based on its rights of subrogation even in the case of restructuring.