The decision confirms that company voluntary arrangements remain a flexible tool for restructuring leasehold portfolios.
The judge rejected each of the landlords’ arguments, confirming that:
..A CVA may provide for different outcomes for different groups of creditors.
..No rigid test exists for “basic fairness” that requires a landlord to receive at least market rent, or that contractual rent should be interfered with to the minimum extent necessary.
..If a landlord is entitled to terminate the lease and receive a better outcome than in the alternative, any automatic unfairness from changes to the terms of the lease is negated.
..Whether a CVA is unfairly prejudicial depends on all the circumstances of the case.
..The fact that the statutory majority to approve a CVA is achieved by the votes of unimpaired creditors or those who receive substantially different treatment is not necessarily unfairly prejudicial (though it is a highly relevant factor in considering unfair prejudice).
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