Virgin Atlantic announced yesterday its plans for a recapitalisation, worth approximately £1.2 billion over the next 18 months. Support has already been secured from the majority of stakeholders.
However, to secure approval from all relevant creditors before implementation, Virgin Atlantic plans to use the new 'restructuring plan' as introduced by the Corporate Insolvency and Governance Act 2020 (CIGA), which came into force late last month.
This will be one of the first restructurings to use the new process, and is likely to be one of the most significant over the coming months. It will be interesting to see how the English court interprets the new legislation - we will be monitoring developments closely.
To secure approval from all relevant creditors before implementation, the Restructuring Plan will go through a court-sanctioned process under Part 26A of the Companies Act 2006 (the “Restructuring Plan”).