Virgin Atlantic - not out of the (Necker the) woods yet...
Airlines have been hit hard by the current COVID-19 crisis as their aircraft is now grounded at airports for the foreseeable future (blogged about by my colleague, Heidi Wagstaff in her "Fight" or "Flight" post).
Today, the news reports that Virgin Atlantic is the latest airline to apply for a government loan to continue to support its operations and secure its future (Easyjet having also sought a bailout). The loan is believed to be for £500m but, notably, will be backed by Sir Richard Branson personally. Sir Branson has offered up his famous Necker Island as collateral for the loan, indicating that it could be mortgaged.
This happens as Virgin Australia (part owned by the Virgin group) collapses into administration in Australia.
Whilst his extensive wealth will doubtless mean that, even if the security is relied upon, his finances won't be too hard hit (a £500m security vs a $4bn estate doesn't appear to be too risky for him!) this does raise the question as to how many other directors and business owners are taking steps to personally secure the future of their business. There is, of course, the availability (to some) of the Coronavirus Business Interruption Loan, but for others a passion for their business or confidence in future success, will lead to personal investment (and associated risk).
The question remains - will we see a wave of personal financial difficulties and associated insolvency procedures linked to business investment in the near future? Bankruptcy (and most other individual insolvency procedures) would leave scars in an individual's financial health for years to come, long after the COVID-19 pandemic has passed.
Phase out of temporary restrictions on use of winding up petitions
Hannah takes a look at the recent UK Government announcement on statutory demands and the presentation of winding up petitions
Be careful what you reference: when witness evidence waives privilege
Gabrielle looks at the recent decision in Scipharm Sarl v Moorfields Eye Hospital NHS Foundation Trust and its impact on privilege
Charles Russell Speechlys advises on the sale of No.1 Lounges Ltd to SwissportALD
SwissportALD will run nine No.1 Lounge properties at the UK’s London Heathrow, London Gatwick, and Birmingham airports.
Weighing in on the importance of attention to detail in service cases
Rory looks at recent judgments that have emphasised the need to follow correct procedure when serving documents in court cases
Property Patter: the whys and wherefores of receivership
What is a fixed charge receiver?
Temporary restrictions on winding-up petitions extended until 30 September 2021
As the restrictions are extended, read what it means for you here.
Up, up and dismay: Airlines bring judicial review challenge to the government's traffic light system for holiday destinations
Property Patter: the news so far on landlord challenges to retail CVAs
We review some of the recent high-profile landlord challenges to tenant CVAs,
Charles Russell Speechlys advises Apollo Aerospace Components on acquisition of NYK Component Solutions
Apollo is an aerospace and defence supplier.
No “New Look” in the latest landlord challenge to a tenant CVA
Daniel and Hannah look at the impact of the recent New Look CVA judgment
Roger Elford quoted by React News on the use of restructuring plans
Restructuring plans can make it easier to overcome opposition from dissenting creditors.
The Lawyer, New Law Journal, International Adviser, CDR Magazine and eprivateclient report on the firm's partner promotions
Charles Russell Speechlys promoted five lawyers to partner, effective 1 May 2021.
Charles Russell Speechlys promotes five to Partner
The promotions are effective 1 May 2021 and are accompanied by one Legal Director and 15 Senior Associate promotions.
Adding claimants pre-service and amending outside the limitation period: pitfalls for the unwary
Sonia looks at a recent High Court judgment and its important guidance on the ability of claimants to be added to a claim before service
Damages-based agreements: an island of clarity in changing seas
Simon, Joe and Lauren look at a recent judgment which is a welcome island of clarity in the damages-based agreement sea of uncertainty.
Patrick Gearon FCIArb
Insolvency Legislation in the GCC
The interesting times of the last 14 months were preceded by the interesting times of the financial crisis of 2008/2009.
Case Study: One Blackfriars Limited
An informative and positive judgment for administrators selling high-value property in distressed and complex scenarios.
Charles Russell Speechlys advises Avation plc on £7.5m secondary placing
Headquartered in Singapore, Avation plc manages a fleet of aircraft which it leases to airlines across the world.
Warranties on an indemnity basis: a question of damages
John and Simon take an in-depth look at warranties on an indemnity basis
Property Patter: The trendy option – FAQs on tenant CVAs
Listen in for the answers to FAQs on tenant Company Voluntary Arrangements