Virgin Atlantic Airways Ltd – Putting the 2020 Restructuring Update to the Test | ZFZ Postcard Cases
In September 2020, the High Court sanctioned Virgin Atlantic Airways Ltd’s restructuring plan under Part 26A of the Companies Act.
The airline faced a severe financial crisis as a result of the Covid-19 pandemic. Virgin sought to use the new tools to implement a plan to restructure.
When making its decision, the Court had regard for previous authorities on Part 26 Schemes of Arrangement. In doing so, the Court considered statutory compliance, representation of the classes, fairness of the scheme, defects in the scheme and international applicability. Unfortunately, the Court did not have the chance to consider the new ‘cross-class cram down’, the first of its kind under English law.
Read more on the decision here.