Small suppliers face losing at least 50% of the money owed to them by the 450-store high street chain TG Jones, formerly WH Smith, under a controversial restructuring plan. 

Bought last year for £76m by private equity firm Modella Capital, the loss-making retailer warns it will likely face administration if creditors do not approve the rescue deal. The plan completely wipes out debts owed to dozens of “exit contract” suppliers, including independent toy and greeting card makers, offering only a potential share of future profits in three years. 

Meanwhile, non-core suppliers will lose over half their money, with remaining balances delayed for three-and-a-half years and major suppliers will also face delayed payouts. Part of a wider turnaround involving a £35m investment, this proposal could also close up to 150 stores. 

More on this story at the Guardian

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German speciality chemicals company Evonik has announced a further restructuring programme that will see around 3,200 jobs cut globally between 2027 and 2029, alongside its planned exit from the polyester business. The announcement follows an earlier restructuring initiative that is expected to eliminate approximately 2,800 positions by the end of 2026. 

As reported in The Recycler, the latest measures reflect wider structural changes affecting industrial markets, where manufacturers are responding to weaker demand, rising costs and increasing international competition by simplifying operations and focusing on higher-value activities. 

Evonik is the latest example of a broader trend towards consolidation across Europe's industrial sector, with businesses reshaping portfolios and reducing costs to remain competitive in a challenging economic environment.

Read more at The Recycler

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In early May 2026, Norwegian lithium-ion phosphate (LFP) manufacturer Morrow Batteries ASA filed for bankruptcy due to a fatal liquidity crisis. The company had recently achieved key milestones, including declaring commercial start of production in January 2026, beginning shipments to Finland-based Proventia in April under a long-term supply agreement, and securing a delivery contract with a German defense company.

However, Morrow ran out of time before closing advanced financing negotiations, despite total funding exposure exceeding NOK 5.1 billion across shareholder equity, loans, and public grants. The board attributed the failure to a structural mismatch between early-stage manufacturing capital demands and global market conditions, citing amongst others: intensified competition, oversupply, price pressure from low-cost Chinese cells and rising capital costs. Morrow's collapse follows similar industry struggles by Northvolt and Freyr.

More on this story at Battery Tech Net

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Financier Lex Greensill has been banned from running UK companies for nine years following the 2021 collapse of his supply chain invoicing firm, Greensill Capital, which left more than £1.6bn in liabilities. To avoid a scheduled six-week High Court trial, Greensill signed a disqualification undertaking with the UK Insolvency Service. 

The regulator ruled he breached his legal duty to exercise reasonable care, skill, and diligence. Specifically, the ban relates to Greensill Capital's lending to US construction company Katerra. Greensill directed his companies to enter transactions that stripped away legal protections from loan notes without the required written consent, causing a $440m loss for Credit Suisse. 

While the Insolvency Service noted the nine-year ban reflects the serious nature of his conduct, a spokesperson for Greensill emphasised that the four-year investigation concluded with no findings of dishonesty or bad faith.

Read more in the Guardian

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The English High Court has sanctioned the second restructuring plan proposed by Waldorf Production UK Plc, despite strong opposition from HMRC. The plan enables Harbour Energy’s $205 million acquisition of Waldorf’s North Sea assets, conditional on the restructuring extinguishing around $94 million of Energy Profits Levy liabilities, with HMRC receiving approximately 14% of its claim. 

The decision follows the court’s refusal to approve Waldorf’s first plan in August 2025, when concerns were raised about fairness and the treatment of dissenting creditors. In approving the revised plan, the court found that HMRC would be no worse off than in the likely alternative insolvency scenario and rejected arguments that the tax authority should have an effective veto over restructuring plans. 

The judgment is a significant development in UK restructuring law, clarifying the limits of HMRC’s influence and reinforcing the court’s willingness to use cross-class cram down powers where a plan is considered fair.

Read more at Kirkland & Ellis

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