A judge in London ruled that gym chain Virgin Active can wipe out the rent arrears on most of its venues and avoid future steep payments, despite the opposition of a majority of its creditors. (Virgin Active South Africa is also owned by Brait, but operates separately from the UK business.) Ultimately, Judge Richard Snowden ruled that with the restructuring plan "no member of a dissenting class will be any worse off than they would be in the relevant alternative". Virgin Active celebrated the ruling as a fair solution that will allow the gym chain to "emerge from the crisis as a stronger business". Going forward, landlords will have to be more creative to avoid the imposition of losses by a minority of creditors.

Source: News 24 May 12, 2021 14:48 UTC