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Lease obligations—class composition and schemes of arrangement (Re MAB Leasing)

Published on: 12 February 2021
Published by: LexisPSL
  • Lease obligations—class composition and schemes of arrangement (Re MAB Leasing)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Single creditor class
  • CTC
  • Case details

Article summary

Restructuring and Insolvency analysis: The UK High Court approved an application for the convening of a single scheme meeting of certain of MAB Leasing Ltd’s (MABL) aircraft lessors. Mr Justice Zacaroli held that in the circumstances it was entirely appropriate that lessors meet as a single class, and although their individual leased assets may be unique and the effect of the scheme on their rights against the company different, this did not prevent the lessors from being able to consult together with a view to their common interest. This judgment not only forms a key element of the wider restructuring of the Malaysia Airlines group but also presents an opportunity for businesses with leased assets to make use of a scheme of arrangement as a restructuring tool. Written by Craig Montgomery, partner and Edward Lewis, associate at Freshfields Bruckhaus Deringer LLP. or take a trial to read the full analysis.

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