Virgin Part 26A Scheme

The tension between landlord creditor rights on the one hand and corporate rescue on the other that was at the core of Zacaroli J's recent judgment in Lazari Properties 2 Ltd v New Look Retailers Ltd continues. The New Look case (now being appealed) `was about CVAs; Snowden J's 12 May 2021 judgment in Re Virgin Active Holdings Ltd & Ors [2021] EWHC 1246 (Ch) deals with restructuring plans proposed by three Virgin companies to certain groups of creditors under Part 26A Companies Act 2006. It follows two prior judgments in the case, one given in connection with the convening of meetings of creditors ([2021] EWHC 814 (Ch)), a second on costs ([2021] EWHC 911 (Ch)); and that of Trower J last year in Re DeepOcean 1 UK Limited [2020] EWHC 3549 (Ch), the first case in which the new "cram down" jurisdiction was used.