Virgin Active is implementing a holistic restructuring of the financial and operational liabilities of its Europe and APAC group, involving the injection of additional debt and equity funding by its shareholders (Virgin Group and Brait), the extension of its debt facilities, the restructuring of its UK leasehold estate and concessions from Virgin Group as licensor of the Virgin brand.
The transaction is being implemented by way of restructuring plans under Part 26A of the Companies Act 2006. The restructuring plans were sanctioned – despite active opposition from an ad hoc group of landlords at both the convening and sanction hearings – by Snowden J on 12 May 2021. The judgment in this case is likely to prove an important landmark in the development of the restructuring plan and, in particular, its usefulness as a tool to address operational liabilities.
The Slaughter and May team has worked closely throughout with members of Virgin Group’s in-house legal team.