Arcadia postpones CVA vote.
7th June 2019.
Arcadia Group and its advisors at Deloitte have postponed a meeting of suppliers, landlords and other creditors voting on seven CVAs until 12 June, amid reports that landlords at Aviva, M&G and Intu voted against the restructuring plans.
The Telegraph reports that landlords felt aggrieved that Arcadia’s pension fund was receiving an extra £25m in cash but landlords were only being offered security over Arcadia’s existing assets and a stake in an unlisted business that was difficult to value.
Creditors were asked to vote on seven separate proposals, each requiring a 75% majority to pass, although it is understood the CVAs that did secure enough backing will not require another vote. Arcadia’s plan includes closing 23 stores and cutting rents on another 194 and the company claims it risks going into administration if the restructuring does not go through.
Arcadia ‘likely to be plotting plan B’
The Guardian’s Sarah Butler look at Arcadia Group’s planned rescue restructure as it seeks to avoid the firm’s collapse, saying it is “complex” as it involves seven interlinked CVAs.
She says that if the plan fails, Arcadia and its advisers at Deloitte “are already likely to be considering plan B,” saying this could include filing a legal notice to appoint administrators, giving the company at least 10 days to organise a pre-pack administration.
The FT also looks today at Arcadia’s rescue plan, looking at the measures needed to secure landlords’ approval of the CVAs.
See previous posts
https://cpa.co.uk/arcadia-gets-hsbc-backing-for-supply-chain/
https://cpa.co.uk/retail-sales-suffer-their-worst-month-in-24-years/