Virgin Atlantic Airways Ltd, Re [2020] EWHC 2376 (Ch) (04 September 2020)

Virgin Atlantic Airways Ltd, Re [2020] EWHC 2376 (Ch) (04 September 2020)

The restructuring plan satisfies all statutory requirements, was overwhelmingly approved by affected creditor classes, treats creditors fairly, and offers materially better returns than administration. Exclusion of certain creditors is commercially justified and properly disclosed. No defects or unfairness...

Source-derived case information.

Citation
[2020] EWHC 2376 (Ch)
Parties
Applicant: Virgin Atlantic Airways Limited; Respondent: RCF Plan Creditors; Respondent: Operating Lessor Plan Creditors; Respondent: Connected Party Plan Creditors; Respondent: Trade Plan Creditors
Jurisdiction
England and Wales
Judgment Date
04 September 2020
Procedural Posture
Restructuring Plan Sanction Hearing / Final Judgment
Outcome
restructuring plan sanctioned
Legal Topics
Restructuring Plan, Scheme of Arrangement, Cross Class Cram Down, Creditor Rights, COVID 19 Impact
Company Law Insolvency Law Restructuring Plan Scheme of Arrangement Cross Class Cram Down Creditor Rights COVID 19 Impact

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Summary, issues, holding and outcome

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Parties

Virgin Atlantic Airways Limited

Applicant

RCF Plan Creditors

Respondent

Operating Lessor Plan Creditors

Respondent

Connected Party Plan Creditors

Respondent

Trade Plan Creditors

Respondent

Procedural Posture

Restructuring Plan Sanction Hearing / Final Judgment

Legal Issues

  1. 1 Whether the restructuring plan under Part 26A Companies Act 2006 should be sanctioned
  2. 2 Whether the statutory requirements of Part 26A are satisfied
  3. 3 Whether the exclusion of certain creditors is justified

Ratio Decidendi

The restructuring plan satisfies all statutory requirements, was overwhelmingly approved by affected creditor classes, treats creditors fairly, and offers materially better returns than administration. Exclusion of certain creditors is commercially justified and properly disclosed. No defects or unfairness identified. Court sanctions the plan under Part 26A.

Court Disposition

restructuring plan sanctioned

Orders

  • Restructuring Plan between Virgin Atlantic Airways Limited and four classes of creditors sanctioned under section 901F Companies Act 2006
  • Plan to become effective 4 September 2020