McDermott Comment | New Look CVA Judge Dismisses Landlords‘ Challenges

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Mark Fine, partner at law firm McDermott Will & Emery, said:

“It is not overly surprising that the landlords’ challenge to the New Look CVA has been dismissed.  Succeeding with such a challenge is notoriously difficult and this has been seen in the past.  Whilst the key challenges around unfair prejudice and jurisdiction were rejected, Justice Zacaroli did provide guidance on where unfair prejudice could be found in the future.

This decision comes at a potentially difficult time for landlords.  Judgment on the Virgin Active restructuring plan is awaited. The company is looking to use powers afforded under the RP to effect a cross-class cram down which will bind landlords into the plan despite voting against it.  A decision on the landlords’ challenge to the Regis CVA is also awaited.”