Jun 17, 2019

Debate over CVAs heats up ahead of Monsoon vote

Monsoon Accessorize will this week become the latest UK retailer to present a company voluntary arrangement as the potential saviour of its business, in the teeth of opposition from landlords. The insolvency procedure is used by retailers to restructure leases and over the past two weeks, landlords have forced Philip Green to improve the terms of the Arcadia CVA while separately, Sports Direct and two property groups have launched a challenge to the Debenhams CVA unveiled in May. All the UK's largest real estate investment trusts - Intu, Hammerson, Land Securities and British Land - are exposed to at least some of those retailers. "The debate has shifted with each CVA we've had," said Matt Ogg, policy adviser at Revo. Insolvency law allows for a legal challenge within 28 days of a CVA vote. The lawyer added that if some compromised landlords can be persuaded to vote in favour, it makes it very hard for others to argue that the CVA has unfairly prejudiced their claims.

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