Travers Smith advises Virgin Active on its successfully sanctioned, ground-breaking Restructuring Plan

Travers Smith LLP has advised Virgin Active on its successfully sanctioned, ground-breaking Restructuring Plan.

The Part 26A Restructuring Plan (the Restructuring Plan) of three companies in the Virgin Active Group (the Plan Companies) was approved by an order of the Hon. Mr Justice Snowden on 12 May 2021. This is a notable development in restructuring techniques. It is only the second time the Court has sanctioned a Restructuring Plan using the cross-class cram down mechanism.

Furthermore, it is the first time the Court has approved a Restructuring Plan containing landlord compromises of the kind more typically found in a company voluntary arrangement (CVA). This case will see Restructuring Plans being added as another option in the restructuring toolbox for companies struggling with unviable real estate portfolios.

The Travers Smith team acted alongside Allen & Overy LLP, with financial advice being provided by Deloitte.

Restructuring & Insolvency Partner Edward Smith led the Travers Smith team, providing the Plan Companies with advice in the lead up to the preparation of the Restructuring Plan, and developing the property-based compromises contained in the Restructuring Plan. He was assisted by Restructuring and Insolvency Senior Associates Kirsty Emery and Natalie Scoones, with support from the firm’s Real Estate team led by Senior Counsel Sarah Walker, assisted by Senior Associate Emma Sykes.