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.
Our thinking
Jessica Williams
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Charles Russell Speechlys named in Global Restructuring Review’s GRR 100 2021
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Hanh and Sara take a look at the energy market
Charles Russell Speechlys successfully advises the Joint Liquidators of LB GP No.1 Ltd in Lehman Brothers litigation before the Court of Appeal
LBGP is a company within the Lehman Brothers Group, whose purpose was to raise regulatory capital for parts of the Group.
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Court of Appeal reviews key principles to consider when making a non-party costs order
Jamie Tilling
Jamie Tilling writes for ThoughtLeaders4 FIRE Magazine on the ramifications of Al Jaber v Mitchell for insolvency practitioners and their investigations
The Court of Appeal has held that the doctrine of immunity from suit applies to statements made by an examinee.
James Hyne
Global Restructuring Review feature the firm’s involvement advising the joint liquidators of LB GP No 1 Limited in the Lehman Brothers’ sub-debt appeal
The Lehman Brothers’ sub-debt appeal continues with guarantor question.
Denis Meyer
The importance of anticipating the restructuring of State Guaranteed Loans
Denis looks at the importance of anticipating the restructuring of State Guaranteed Loans
Hannah Edwards
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
Gabrielle Shovlin
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
Hamish Perry
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.
Rory Partridge
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
Emma Humphreys
Property Patter: the whys and wherefores of receivership
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