Virgin Atlantic—first ever Part 26A restructuring plan receives approval at sanction hearing

Virgin Atlantic—first ever Part 26A restructuring plan receives approval at sanction hearing

This case analysis looks at the first ever sanction hearing for a new Part 26A restructuring plan (or Part 26A plan or Part 26A scheme) created by the Corporate Insolvency and Governance Act 2020 (CIGA 2020). At the earlier convening hearing, Mr Justice Trower approved the convening of four classes of creditors to vote at the creditors’ meetings. The restructuring plan was subsequently approved at the four creditors’ meetings and finally sanctioned by Mr Justice Snowden today.

What was the background?

This was an application by Virgin Atlantic Airways Ltd for an order sanctioning a restructuring plan pursuant to Part 26A of the Companies Act 2006 (CA 2006)(ie the sanction hearing). This is believed to be the first ever sanction hearing for a new Part 26 restructuring plan (or Part 26A plan or Part 26A scheme) created by CIGA 2020.

 Plan timetable

The timetable for the restructuring plan is as follows:

  •  4 August 2020: convening hearing before Trower J reported at: Re Virgin Atlantic Airways Limited [2020] EWHC 2191 (Ch)(also see News Analysis:

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About the author:
Kathy specialises in restructuring and cross-border insolvency. She qualified as a solicitor in 1995 and has since worked for Weil Gotshal & Manges and Freshfields. Kathy has worked on some of the largest restructuring cases in the last decade, including Worldcom, Parmalat, Enron and Eurotunnel.