A key aspect to the decision was that the High Court found that Cineworld provided the original undertakings in good faith. However, time had passed since they were given, and Cineworld’s financial position had deteriorated beyond what could have been predicted at the time of the first restructuring.

It stressed that the impact of the decision should not be to provide tenants with the ability to get out of previous deals made when restructuring and that each case would need to turn on its facts. However, this does seem to provide a major opportunity for struggling tenant companies to renegotiate further compromises of existing contracts and leases.
