Leases

Regis CVA revoked as court declares it unfairly prejudicial

In a change of fortunes for UK landlords, a court has revoked hairdressing chain Regis’ company voluntary arrangement, finding the inclusion of a shareholder as an unimpaired critical creditor was unfairly prejudicial – and that a CVA nominee’s conduct fell below the standard required.

17 May 2021

New Look CVA dispute will head to Court of Appeal

Landlords challenging New Look’s company voluntary arrangement have been granted permission to appeal, sparking a new chapter in what has been a rollercoaster week for commercial property owners in the UK.

14 May 2021

Lawyers react to Virgin Active plan sanction decision

A company voluntary arrangement on steroids, or a tool that gives Goliath license to squash David? Lawyers on the debtors’ and landlords’ side give their take on Virgin Active’s freshly-sanctioned restructuring plans: the first to compromise lease liabilities, with the most extensive cram-down seen to date.

13 May 2021

Virgin Active secures second-ever UK cross-class cramdown

Gym chain Virgin Active’s heavily contested restructuring plans have been sanctioned in a judgment affirming that English courts will afford weight to the decisions of higher-ranking creditors when exercising their discretion over cross-class cramdowns.

12 May 2021

New Look CVA survives landlords’ challenge intact

High street fashion chain New Look’s company voluntary arrangement has survived a challenge from landlords after Mr Justice Zacaroli in the English High Court swept away allegations of unfair prejudice and material irregularity in their entirety.

10 May 2021

Virgin Active landlord serves forfeiture as plan sanction hearing closes

Minutes before the end of Virgin Active’s five day-long contested plan sanction hearing, the court heard that the owner of one of its gym sites had served forfeiture proceedings because it said it would do better re-letting its West London premises afresh than under the plans.

05 May 2021

Wind beneath my wings? Virgin Active probes court’s role in contested plans

On the fourth day of its contested UK plan hearings, counsel to Virgin Active, its secured lenders and opposing landlords clashed on how far the courts should assess the merits of restructuring plans: does satisfaction of the two conditions in Part 26A give the company “a fair wind”, or should the court be looking to see if something better is “waiting in the wings"?

04 May 2021

Virgin Active plan sanction hearing reaches closing submissions

Virgin Active’s contested plan sanction hearing continued through the May bank holiday with Mr Justice Snowden asking counsel for terms of reference on how to gauge whether its plans are just and equitable - noting that the gym chain appeared to be arguing “quite a broad proposition” that higher ranking creditors can determine how the group's value should be divided.

03 May 2021

Landlords for lunch: day one of Virgin Active’s contested sanction hearing

“If you’re not at the table, it’s because you’re lunch,” said Robin Dicker QC, counsel to landlords of gym chain Virgin Active, as he challenged the company’s CEO on why its UK restructuring plans purported to work for its shareholders more than its property lessors.

29 April 2021

Lion Air leasing dispute falls foul of English service rule

An aircraft leasing group that is trying to sue Indonesian and Thai subsidiaries of Asia’s Lion Air in England should have sought permission for service out of the jurisdiction before applying for alternative service, a court has found, in a dispute playing out against parallel conciliation proceedings in France.

28 April 2021

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