Cineworld Restructuring Plans Sanctioned

Mr Justice Miles rejected two opposing landlords’ applications for injunctive relief to remove them from the plans on the basis that side letters entered into with certain of the plan companies meant that they should not be included therein. The correct framework was that under Part 26A. The Court had jurisdiction to compromise the landlords’ liabilities under the side letters, the side letters did not give rise to materially different rights and it was appropriate and fair for the opposing landlords’ liabilities to be included in the plans.

The Court emphasised the importance of pari passu treatment of creditors with the same rights. Removing the opposing landlords from the plans would put them in a better position than other landlords with sites in the same categories, which would infringe the pari passu principle.

Read the judgment here.