Navigating Government-Imposed Sanctions in Administration

Natalie Peacock, Associate , DLA Piper UK LLP
David Buchler, Chairman, Insolvency Practitioner, Buchler Phillips
Professor David Fordham, In-house Counsel, Buchler Phillips
Chris Parker, Partner and International Co-Chair, Restructuring and Insolvency, DLA Piper UK LLP
John Forrest, Head of Global Trade & Regulatory Affairs, DLA Piper LLP
James Davison, Partner, Restructuring, DLA PIPER UK LLP

Prior to entering into administration, CargoLogicAir was the UK’s only maindeck freighter airline, which also secured a major contract to transport urgent medical supplies to combat COVID-19. CargoLogicAir is an English registered company and a wholly owned subsidiary of Cargo Logic Holding Ltd (company registration: 09605430) (Parent). In the period prior to its administration CargoLogicAir had a workforce of approximately 110 employees in the UK and certain European jurisdictions, however the majority were based in the United Kingdom. Given the nature of its business the workforce included highly skilled, regulated individuals. Following Russia’s invasion of Ukraine in February 2022 and the introduction of a wider range of EU and UK restrictions against Russian carriers and their owners (but before CargoLogicAir became subject to UK sanctions), it became increasingly difficult for CargoLogicAir to operate commercially. At this time, CargoLogicAir leased two B747 aircraft in carrying on its business (“Leased Aircraft”). In February 2022, the EU refused access to EU airports for Russian carriers and prohibited them from flying over EU airspace. Furthermore, in March 2022, the UK and EU introduced additional measures prohibiting the provision of technical assistance to Russian carriers, effectively grounding the Leased Aircraft. These measures had the effect of preventing both aircraft registered in Russia and/or aircraft leased (whether directly or indirectly) to a Russian citizen and/or entity, landing at an airport based in the EU or flying over EU countries (“EU Airspace Restrictions”). Given CargoLogicAir’s ownership structure, this had a material impact on its ability to carry out its ordinary operations.

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UK Sanctions Shipping April 2023 Vol.16, No. 63, Spring 2023

Natalie Peacock

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Natalie is a restructuring and insolvency lawyer and is a specialist in distressed aviation matters. She has experience of a wide range of contentious and non-contentious matters, including formal insolvency matters, financial restructuring, asset-based lending and domestic and cross jurisdictional turnaround matters. Natalie’s practice spans a number of sectors, including aviation, retail, industrial, construction and consumer credit.

David Buchler

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Professor David Fordham

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Professor David Fordham has extensive experience across many financial and industry sectors, both as a lawyer and as a merchant and private banker operating at senior management and Board level. David is also a Fellow of the Chartered Governance Institute and is Professor and Senior Lecturer in International Finance and Banking at the Centre for Commercial studies, Queen Mary University, London

Chris Parker

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Chris specialises in special situations and contentious matters, generally involving cross-border investigations and disputes. He is currently leading the DLA team on investigations and litigation relating to an alleged $5bn fraud following the failure of former FTSE100 business NMC Health Plc, and previously led the Lehman Waterfall litigation on behalf of the administrators of Lehman Brothers Limited, to a successful outcome in the Supreme Court.

John Forrest

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James Davison

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James is a UK-based Partner in DLA Piper's Global Restructuring practice. He typically advises in turnaround situations with the objective of protecting and maximising value for stakeholders. Since joining DLA Piper in 2020, James has acted on a series of high profile restructuring situations, in a variety of sectors, including hospitality and leisure, retail, energy, financial services, travel and aviation. Recent mandates include: - the wind down, through administration, of Cargologicair, a UK headquartered airline subject to sanctions; - the Energy Supply Administration of Bulb Energy; - the first Restructuring Plan proposed by an SME, Houst Limited - the accelerated sale of bespoke tailor, Gieves & Hawkes; - the accelerated sale of online retailer, Missguided.

DLA PIPER UK LLP

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DLA Piper UK LLP is a full-service, global law firm with offices in over 40 jurisdictions across the Americas, Asia Pacific, Europe, Africa and the Middle East. For CargoLogicAir we were able to draw on our in-depth industry leading expertise in providing legal advice on Sanctions, Aviation, Restructuring and Insolvency, Litigation, Corporate, Employment and others. The DLA Piper team comprises of, amongst others, Chris Parker (Partner and International Co-Chair, Restructuring and Insolvency), James Davison, (Partner, Restructuring and Insolvency), Natalie Peacock (Associate, Restructuring and Insolvency), John Forrest (Head of Global Trade & Regulatory Affairs), Daniel Jones (Senior Associate, Global Trade & Regulatory Affairs), Mark Franklin (Partner, Aviation Litigation & Regulatory), Kathryn Ward (Counsel, Aviation Litigation & Regulatory),

DLA Piper LLP

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DLA Piper UK LLP

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DLA Piper UK LLP is a full-service, global law firm with offices in over 40 jurisdictions across the Americas, Asia Pacific, Europe, Africa and the Middle East. For CargoLogicAir we were able to draw on our in-depth industry leading expertise in providing legal advice on Sanctions, Aviation, Restructuring and Insolvency, Litigation, Corporate, Employment and others. The DLA Piper team comprises of, amongst others, Chris Parker (Partner and International Co-Chair, Restructuring and Insolvency), James Davison, (Partner, Restructuring and Insolvency), Natalie Peacock (Associate, Restructuring and Insolvency), John Forrest (Head of Global Trade & Regulatory Affairs), Daniel Jones (Senior Associate, Global Trade & Regulatory Affairs), Mark Franklin (Partner, Aviation Litigation & Regulatory), Kathryn Ward (Counsel, Aviation Litigation & Regulatory),

Buchler Phillips

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Buchler Phillips is a UK based independent boutique firm, specialising in corporate recovery, turnaround, restructuring and insolvency, dealing also with business advisory work in a wide variety of sectors. Based on a professional heritage dating back to the 1930s, the senior team at Buchler Phillips is equally comfortable advising global corporations, Small and Medium Enterprises (SMEs) or individuals on all aspects of financial and operational challenges, as well as supporting them in their ambitions to grow. Backed by decades of experience, each of our Directors and team members, bring to any given engagement unique independent insight, free from conflicts of interest, that is often sought but rarely found by clients or co-advisors. The firm is sector-agnostic but has particularly strong credentials in real estate; retail; financial services; UK sport; airlines and aviation; leisure and hospitality; transport and logistics; manufacturing and engineering; technology, media and entertainment. Our Directors’ work in these areas has included complex and high-profile assignments. Our activities fall broadly, though by no means exclusively, into the following areas: Turnaround and Restructuring; Insolvency and Corporate Recovery; Forensic and Fraud Investigation; Expert Witness services; Corporate Finance and Real Estate Advisory.

DLA Piper UK LLP

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DLA Piper UK LLP is a full-service, global law firm with offices in over 40 jurisdictions across the Americas, Asia Pacific, Europe, Africa and the Middle East. For CargoLogicAir we were able to draw on our in-depth industry leading expertise in providing legal advice on Sanctions, Aviation, Restructuring and Insolvency, Litigation, Corporate, Employment and others. The DLA Piper team comprises of, amongst others, Chris Parker (Partner and International Co-Chair, Restructuring and Insolvency), James Davison, (Partner, Restructuring and Insolvency), Natalie Peacock (Associate, Restructuring and Insolvency), John Forrest (Head of Global Trade & Regulatory Affairs), Daniel Jones (Senior Associate, Global Trade & Regulatory Affairs), Mark Franklin (Partner, Aviation Litigation & Regulatory) and Kathryn Ward (Counsel, Aviation Litigation & Regulatory).

UK Sanctions Shipping April 2023 Vol.16, No. 63, Spring 2023
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