A Debenhams landlord has decided to appeal against a recent High Court ruling which paved the way for the embattled retailer’s CVA to go ahead.
According to a report by the Telegraph, the Salford-based landlord is hoping to “overthrow” the legal win from two months ago.
In September, the High Court rejected the legal challenge against Debenhams’ proposed CVA, which was funded by Mike Ashley’s Sports Direct.
The challenge was made by the Combined Property Control Group (CPC) – the landlord of six Debenhams stores in England as it argued the CVA was “designed to create a situation in which the company’s general body of unsecured creditors is paid in full at the expense of certain landlords and local authorities”.
However, the High Court ruled in favour of Debenhams claiming that its CVA proposal “continues to be effective”.
The administration followed Debenhams’ rejection of Sports Direct’s offer to underwrite £150m equity issuance. The decision also saw Sports Direct’s 30% stake in the department store wiped out.
Stefaan Vansteenkiste, Debenhams’ CEO, said at the time: “We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned.
“We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions.”
