Insolvency - September 2010

New breed of CVA procedures
On 6 September 2010, Insolvency News posted an article which discussed changes to the controversial procedures of company voluntary arrangements (CVAs) which could ease the fraught tensions between retailers and the property industry.

Mike Jervis, partner at PricewaterhouseCoopers, has initiated what he terms a "new breed" of the process which could result in an agreement between the two fighting sides.

Landlords have accused struggling companies of using CVAs to dump unprofitable properties and leave the owners of the estate with huge liabilities including empty properties. But Jervis has devised a CVA that gives landlords a share of the eventual profits if a tenant emerges from the restructuring in better health. The new type of arrangement focuses on the offer of by making a concession towards the company while it is struggling, landlords will make returns when the business is in better health.
Details at: http://insolvencynews.com/article/show/New-breed-of-CVA-procedures