IWG to face Vornado’s storm in High Court

A Manhattan property company will face IWG founder Mark Dixon in the High Court this week over his controversial move to wind up Regus plc. Property firm Vornado Realty Trust is leading a legal challenge over how the handling of the bankruptcy was passed to Luxembourg, after taking £644m in cash from the firm. Last October, IWG wound up Regus plc, leaving landlords whose leases were guaranteed by the subsidiary with no recourse as the parent company pushed for rent cuts in the wake of Covid. Vornado is leading the legal challenge to the Royal Court of Jersey’s decision to pass the handling of the bankruptcy to Luxembourg, due to the subsidiary’s tax residency there. The $8bn business has already won one court battle against IWG this year, after a San Francisco court ruled in Vornado’s favour over the company’s attempts to terminate a lease on an office complex worth $90m over 15 years. The Telegraph (£)