Restructuring plans were introduced into law at the height of the coronavirus crisis in 2020 to provide businesses with a new tool with which to overcome financial difficulty.
The hearing to approve the restructuring plans proposed by Virgin Active is scheduled to commence on Thursday 29 April. If approved, the restructuring would bind opposing landlords into writing off overdue rent and to accepting reduced future rental income. This is likely to have wide implications for landlords in other cases.
Background
The Virgin Active group, a health club business, says it has been severely impacted by the Covid-19 pandemic. It is seeking to urgently implement a restructuring of its financial debt and lease liabilities to avoid collapse when c…
Read the full article at: https://www.pinsentmasons.com/out-law/analysis/landlords-challenge-fairness-of-restructuring-plan-in-landmark-case