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(Bloomberg) — The UK’s tax office is seeking to block Waldorf Production from restructuring its liabilities in a London court, as the nation’s fiscal body takes an increasingly aggressive stance when it comes to debt collecting.
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The struggling oil and gas company owes Homeland Revenue & Customs an estimated $72.4 million, court documents seen by Bloomberg show. The HMRC — the sole dissenting creditor in the case — is challenging Waldorf’s bid to rid itself of those debts, arguing that it is not an ordinary commercial creditor and that the court has no authority to impose a “compromise” on the tax office.
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A judge on Wednesday ruled that creditors could go ahead and vote on the proposals, which will be assessed at hearing in April. According to UK restructuring law, creditors can impose losses on the others in what is knows as a “cram down” provision.
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The company is seeking to write off liabilities including around $117 million of outstanding bonds, so that it can be sold to UK energy firm Harbour Energy Plc, the court documents show.
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For Waldorf, the case is the latest twist in a long-running saga to right its balance sheet. Its previous restructuring plan was shot down by a London court last year, with a judge arguing that “out of the money” creditors were not fairly treated.
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The wrangling comes as the HMRC ramps up efforts to collect overdue tax debt, which now sits at around £27.1 billion ($37 billion), according to advisory firm Begbies Traynor. Concerns have grown amid the business community that efforts to pursue late payers could increasingly tip firms into insolvency.
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