Virgin Atlantic Airways Ltd, Re

Virgin Atlantic Airways Ltd, Re

The statutory requirements of Part 26A Companies Act 2006 were satisfied, the classes of creditors were fairly represented and properly consulted, the exclusion of certain creditors was commercially justified and fully disclosed, the plan was fair and reasonable, and there were no defects. The court therefore sanctioned the restructuring plan.

Parties
Applicant: Virgin Atlantic Airways Limited; Creditor: RCF Plan Creditors; Creditor: Operating Lessor Plan Creditors; Creditor: Connected Party Plan Creditors; Creditor: Trade Plan Creditors
Jurisdiction
England and Wales
Judgment Date
04 September 2020
Procedural Posture
Company Restructuring / Insolvency / Sanction Hearing for Restructuring Plan
Outcome
restructuring plan sanctioned
Legal Topics
Restructuring Plan, Creditor Arrangements, Cross Class Cram Down, Companies Act 2006 Part 26 a, COVID 19 Impact
Company Law Insolvency Law Restructuring Plan Creditor Arrangements Cross Class Cram Down Companies Act 2006 Part 26 a COVID 19 Impact

Case Brief

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Parties

Virgin Atlantic Airways Limited

Applicant

RCF Plan Creditors

Creditor

Operating Lessor Plan Creditors

Creditor

Connected Party Plan Creditors

Creditor

Trade Plan Creditors

Creditor

Procedural Posture

Company Restructuring / Insolvency / Sanction Hearing for Restructuring Plan

Legal Issues

  1. 1 Whether the statutory requirements for sanctioning a restructuring plan under Part 26A Companies Act 2006 are met
  2. 2 Whether the classes of creditors were fairly represented and properly consulted
  3. 3 Whether the exclusion of certain creditors from the plan was justified and fair

Ratio Decidendi

The statutory requirements of Part 26A Companies Act 2006 were satisfied, the classes of creditors were fairly represented and properly consulted, the exclusion of certain creditors was commercially justified and fully disclosed, the plan was fair and reasonable, and there were no defects. The court therefore sanctioned the restructuring plan.

Court Disposition

restructuring plan sanctioned

Orders

  • The restructuring plan between Virgin Atlantic Airways Limited and the four classes of creditors is sanctioned under Part 26A Companies Act 2006.