New Look, Virgin Active and Regis

A hat trick of leading decisions on creditor cramdowns

In the space of a week we have received three landmark decisions from the High Court, all relating to the compromise of lease liabilities. Virgin Active saw a cross class cram down in the first truly contested Restructuring Plan since the legislation was introduced last year. It has been flanked by the decisions on the New Look and, as of yesterday, Regis CVAs. Leave to appeal has been granted on New Look, but already the three provide market defining and much needed clarification for debtors and their stakeholders as to the permissible scope of cram down. The current moratorium on landlord enforcement action in relation to commercial property is due to end on 30 June 2021. Who knows what steps the Government might yet take to avoid a cliff-edge on 30 June 2021, but the timing could not be more relevant. 

Hogan Lovells has played a leading role in each of these ground-breaking cases, combining the strength of our restructuring and insolvency practice with our deep real estate industry sector expertise. We're hosting a webinar where we will discuss the three cases and what their impact may be for future restructurings.

Click here to register for this webinar

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