- When not to use a CVA: 10 lessons from recent restructurings
- 1. When a full operational and/or financial restructuring is required
- 2. When leasehold obligations sit in multiple companies
- 3. When 75% consent is not achievable
- 4. When seeking waivers of insolvency events of default/termination provisions is too difficult
- 5. When the leases are guaranteed by a solvent company
- 6. When you prefer to avoid a highly-publicised process
- 7. When you need a moratorium
- 8. When a pre-pack administration is preferable
- 9. When landlords can do better with a new tenant
- 10. When the company is not an “English company”
Restructuring & Insolvency analysis: 2018 has been described as “the year of the CVA”, especially in the retail and casual dining sectors. Although company voluntary arrangements (CVAs) can be a useful tool to compromise portfolios of leasehold obligations, there are certain situations where a CVA may be unsuitable. Mark Lawford, Adam Plainer, Kate Stephenson, Andrew Wilkinson and Alexander Wood of Weil, Gotshal & Manges LLP examine the practical issues.
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