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Monsoon and Debenhams CVA Challenges

CVA Challenges


In more difficulties between landlords and retail companies it appears that two CVAs are being challenged through the courts.

Monsoon

It is being report that British Land (a FTSE 100 property company) are bringing a legal challenge to the CVA of Monsoon Accessorize. 

Out of the 258 stores across the UK, British Land owns five of them. The terms of the CVA detailed rent cuts of between 25% and 65%.

British Land voted against the CVA but nonetheless it was approved by 90% of creditors in July. This is reported to have left them no choice but to bring the legal challenge which reported as being concerns around new funding being provided by the retailer’s owner Peter Simon.


Debenhams

The Debenhams CVA is being challenged in the courts by Combined Property Control Group (CPG) and it is reported in the press that Debenhams have approached Deloitte in case they lose the case and need to re-enter Administration.
 
The CVA was accepted in July but CPG, who own six of the stores, are challenging the CVA in court on the grounds of its unfairness to the landlord. This challenge is being supported by Mike Ashley, who was Debenham’s largest shareholder, and dropped his own challenge to the CVA earlier in July.
 
The outcome of this ruling, which is expected very soon, could have wide reaching implications for IPs in how to treat landlords within a CVA and how their claims should be dealt with for voting purposes. We will, of course, cover this as part of CPD Tap for our Tap subscribers.

 

Posted: 10.09.2019
Tags:  announcement
 


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