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Kate Stephenson, partner at Kirkland & Ellis International LLP, predicts that Debenhams’ High Court victory will become the leading case on company voluntary arrangements (CVAs).
Discovery (Northampton) Ltd and others v Debenhams Retail Ltd and others  EWHC 2441 (Ch)
The market will adjust to reflect the court’s ruling that a CVA cannot vary a right of forfeiture (because it is a proprietary right). There may, however, be grounds to say that landlords have waived their right to forfeit, including where they voted in favour of the CVA or treat the lease as continuing post-CVA (including by accepting rent).
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