Grand Arcade CVA clears way for sale
Published: 06 August, 2010
Two subsidiaries of Modus Properties, the owner of the Grand Arcade shopping centre in Wigan that was placed in administration last year, have successfully negotiated CVAs with their creditors, clearing the way for the sale of the centre.
The CVA was initially proposed some weeks ago as part of an offer for the shopping centre from Redefine International, an existing investor in the centre. The offer comprised the making of funds available for distribution to both preferential and unsecured creditors through Company Voluntary Arrangements for each of the holding companies.
To come into effect, a CVA has to be approved by 75 percent of creditors. At a creditor’s meeting held earlier today, the two CVAs were voted through by 100 percent of creditors. This results in the Joint Administrators exiting the administration, rescuing the companies as a going concern.
Mark Firmin, joint administrator and partner at KPMG Restructuring, commented: "We are delighted that the CVA has been met with 100 percent approval from creditors. Our primary objective from the outset of this administration was to ensure the survival of the businesses as a going concern. Not only has this been achieved, but the creditors of the two companies will receive a higher dividend distribution than would otherwise be available.”
He added: “This also demonstrates the versatility of a CVA process. Not only is it a tool that can be used to restructure traditional retail and trading businesses; in this instance, we were able to find an elegant solution for a distressed property company which ultimately delivered maximum value.”
