The Sunday Times, page Business
By Sam Chambers & Liam Kelly
American landlords have ordered Sir Philip Green to explain why Arcadia Group’s debts to certain suppliers jumped at around the time of the second crucial vote on its restructuring, potentially diminishing the power of property owners to block it.
Green’s fashion empire used a company voluntary arrangement (CVA) — a controversial insolvency procedure — to shut stores and cut rents. CVAs require 75% of all creditors to approve them, but because they disproportionately hit landlords, suppliers almost always vote in their favour.
"The accusation is that the CVA culprit is creating an even higher voting right for non-landlords, to force it through," said Adam Coffer of property investor EPF.
Read the full article here: https://www.thetimes.co.uk/article/landlords-quiz-sir-philip-green-over-size-of-debts-in-cva-tms5q8t88