UK court seeks to bind Gategroup’s Swissie bondholders

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By Owen Sanderson
18 Feb 2021

Holders of Gategroup’s Swiss franc high yield bonds, thought to be mostly retail investors, look set to be bound by a High Court of England and Wales judgement — handed down on Wednesday — in the restructuring of the in-flight food provider’s debt, despite bond terms giving exclusive jurisdiction to the courts of Zurich.

The judgement turns on whether Gategroup’s debt restructuring, being run under the new “super scheme” for restructuring passed into English law in June, counts as an insolvency or not.

For most players in the restructuring universe most of the time, this is barely even a question. Schemes of ...

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