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When not to use a CVA: 10 lessons from recent restructurings

When not to use a CVA: 10 lessons from recent restructurings
Published on: 25 June 2018
Published by: LexisPSL
  • 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
  • More...

Article summary

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. or take a trial to read the full analysis.

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