Summary judgment stayed where part 26A restructuring plan pending
Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending. Here, the tenant, Virgin Active Health Clubs Ltd, had proposed a Part 26A restructuring plan and the Court was asked to consider competing applications for summary judgment and a stay.
There was a reasonable prospect that the restructuring plan would receive sanction; even if only as a result of the Court鈥檚 discretion to override any dissenting class (or classes) of creditor because: (i) creditors would be no worse off; and (ii) at least one class would approve the plan by the requisite majority.
It was plain to see that summary judgment would undermine the restructuring plan since, if successful, the claimant landlord would receive substantially more than other landlords in the same class. As a result, the Court was forced to ask whether a stay would prejudice the legitimate interests of any relevant person and, if so, where the balance of convenience lay?
Ultimately the interests of the wider class of creditors trumped the private interests of the landlord and a short stay under CPR 3.1(2)(f) was imposed, until after the sanction hearing for the restructuring plan, to allow the process under Part 26A to proceed.
This case, whilst not surprising to insolvency professionals given the importance placed on creditors鈥 interest as a whole, will be disturbing to those landlords who, having adhered to Government guidance, have deliberately held off taking enforcement steps and may now find themselves unable to do so, having their dissent disregarded and having those same debts compromised using this new restructuring regime.
Co-authored by Emma Taylor and Louise Read.
Related expertise
You may be interested in...
澳门六合彩资料
Navigating workplace sexual harassment laws during the festive season
澳门六合彩资料
Retail Law Roundup: December 2024
澳门六合彩资料
Navigating the Levelling Up and Regeneration Act 2023: Implications for retailers with vacant premises
澳门六合彩资料
UK consumer law: What is changing and how might it affect retailers?
Press Release
澳门六合彩资料 advises retail giant The Range on its acquisition of Homebase
Opinion
Power for local authorities to conduct compulsory rental auctions of vacant high street properties to come into force next month
澳门六合彩资料
Building an inclusive workplace: strategies for attracting and retaining disabled talent
澳门六合彩资料
Roundtable report: Community engagement in high street regeneration
澳门六合彩资料
Reform of Gambling Regulation in Ireland
澳门六合彩资料
ASA bans 鈥渕isleading鈥 Huel and ZOE ads endorsed by Dragon鈥檚 Den Star
Opinion
Choose your words wisely: Balancing inclusivity and employees鈥 beliefs at work
Guide
Guidance for manufacturers of EVs and HEVs in the UK: ASA's non-exhaustive electric vehicle advertising guidance
澳门六合彩资料
(Deep)fake it till you make it? The ASA's role in regulating false celebrity endorsements
Press Release
澳门六合彩资料 strengthens Irish Corporate team with appointment of Principal Associate James Byrne
澳门六合彩资料
The benefits of good governance in sport
Press Release
澳门六合彩资料 to lead discussions on the future of real estate and infrastructure at this year鈥檚 UKREiiF 2024 event
Press Release
澳门六合彩资料 acquires business of real estate practitioner Paul Taylor Solicitors
澳门六合彩资料
The Baltimore bridge collapse: One of the biggest losses in maritime insurance history?
澳门六合彩资料
Understanding the ICO's new fining guidance
澳门六合彩资料
Unravelling the challenges and opportunities in UK sports governance
澳门六合彩资料
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
澳门六合彩资料 successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
澳门六合彩资料
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
澳门六合彩资料
COP28 - how to limit and prepare for future climate change
Press Release
澳门六合彩资料 advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join 澳门六合彩资料
Podcast
The real estate podcast: How AI and tech is changing real estate
澳门六合彩资料
How to negotiate better 鈥榞reen鈥 provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
澳门六合彩资料
Utilising prime retail sites to improve the health of our nation
澳门六合彩资料
A new era of opportunity for high street regeneration?
Opinion
Practical points from High Court ruling that Tesco has infringed Lidl鈥檚 IP rights in its famous yellow circle logo
Press Release
Corporate dealmakers advise Sodexo Live! on its move to 100% stake in global sports, travel and hospitality provider STH
澳门六合彩资料
Pitfalls for retailers to avoid when offering access to 鈥榖uy now, pay later鈥 products
Press Release
澳门六合彩资料鈥檚 Manchester dealmakers advise Spatial Global on its acquisition of Heathrow based freight specialist Hollyport Logistics
