27 May 2021
R&I update – June 2021 – 3 of 4 Insights
On 17 May 2021, in the third of a trio of landlord challenge cases, the English High Court revoked Regis UK Limited's company voluntary arrangement (CVA) on one ground of unfair prejudice, but ruled against landlords seeking repayment of fees against the nominees.
The Regis CVA was approved by creditors on 26 October 2018. Certain landlords challenged the CVA on grounds of material irregularity and unfair prejudice. The company entered administration a year later and the CVA automatically terminated. The landlords continued to pursue the CVA challenge that the nominees had breached their duties and should therefore be obliged to repay their fees.
The judgments in Regis and New Look will reassure retailers of the continued use of CVAs as a flexible restructuring tool. However, watch this space – landlords in New Look have been given permission to appeal the judgment on all grounds of challenge in that case.
To discuss the issues raised in this article in more detail, please reach out to a member of our Restructuring & Insolvency team.