Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
Check out our straightforward definitions of common legal terms.
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Access our unrivalled global news content, business information and analytics solutions
Insurance, risk and compliance intelligence using big data, proprietary linking and advanced analytics.
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
This News Analysis looks at the recent scheme case for Malaysia Airlines and the impact of the Cape Town Convention. Written by Craig Montgomery and Adam Jones of Freshfields Bruckhaus Deringer LLP, who are advising Malaysia Airlines.
On 20 January 2021, the UK High Court approved the convening of a single scheme meeting for certain aircraft lessors of MAB Leasing Ltd (MABL) in relation its proposed UK scheme of arrangement. This is an important step towards the implementation of a wider restructuring for the Malaysia Airlines group, but may also have wider implications on the restructuring options available not only to airlines, but also to businesses with other leased assets, including real estate.
Lessors form a single class
The proposed UK scheme offers all relevant lessors a number of options, including to:
The amended rents offered necessarily mean creditors that do not choose to terminate their leases will receive differing rent reductions compared to their existing contractual terms. The court considered that this did not fracture the single proposed class for the following reasons:
The decision makes it clear that, while individual leased assets may be unique and the contractual terms across a proposed class may not be identical, this does not mean the lessors of those assets are unable to consult together and form a single class for the purpose of a UK scheme, where, as here, there is more that unites them than divides them.
Cape Town Convention
Without deciding the point, the court referred to ‘powerful’ arguments made by MABL’s counsel that a scheme was not an ‘insolvency proceeding’ for the purposes of the Cape Town Convention and therefore did not prevent a UK scheme from varying leases without the consent of each individual lessor. In doing so, the court was effectively disagreeing with some academic and industry commentary that UK schemes are insolvency proceedings for these purposes.
A global Freshfields restructuring and aviation team is advising Malaysia Airlines, including Craig Montgomery, Konrad Schott, Catherine Balmond, Madlyn Primoff, Johannes Vogel, Yong Wei Chan, Dan Butler, Alper Utlu, Felipe Villena, Adam Jones, Miryam Farrelly, Ed Lewis and Arthur Law.
Free trials are only available to individuals based in the UK
* denotes a required field
0330 161 1234