New Judgment – Re Deutsche Glasfaser Group GmbH [2026] EWHC 1467 (Ch) (convening hearing)

The High Court (Mr Justice Hildyard) made an order convening a single scheme meeting in relation to the scheme of arrangement proposed between the scheme company, Deutsche Glasfaser Group GmbH, and its scheme creditors.

The scheme company, and the group of which it is a part, is a leading provider of fibre optics in Germany.  The scheme forms part of a wider proposed recapitalisation of the group.  The recapitalisation was proposed in order to manage the group’s existing debt of €7 billion and in particular an imminent liquidity requirement at the end of June 2026.  The recapitalisation proposed three key elements: bifurcation and reinstatement of the existing debt at two different levels of seniority, the injection of €400 million in new money on a super senior basis, and an equity contribution of €845 million from affiliates of the existing shareholders of the group (with the first and second of the three elements of the recapitalisation taking place by the scheme).

The scheme enjoyed very high support from an early stage, and by the time of the convening hearing over 95% of scheme creditors had already locked up in support of the scheme.

After considering and being satisfied of issues of notice and jurisdiction, the court considered class composition and concluded that the scheme company had been correct to suggest that there should be a single scheme meeting with only one class of scheme creditors.  In relation to practical matters, the court agreed with both the scheme company and the scheme creditors that it was permissible and appropriate for the Court to order that documents before the Court at the convening could be further amended before being distributed to scheme creditors.  The Court therefore ordered a staggered distribution of documents to scheme creditors, in order to allow more time for the parties to engage and reach a collective view on outstanding issues where possible.

Following the judgment and convening order of Mr Justice Hildyard, the scheme creditors voted overwhelmingly in favour of the scheme at the scheme meeting.  At the sanction hearing on 19 June 2026, the Court (Mr Justice Adam Johnson) made an order sanctioning the scheme, with written reasons to follow.

Tom Smith KC, Henry Phillips and Angus Groom of South Square appeared for the scheme company, instructed by Freshfields LLP.

Adam Al-Attar KC and Matthew Abraham of South Square appeared for the scheme creditors, instructed by Linklaters LLP.

Read the full judgment here