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Archant calls on CVA and pension lifeboat in rescue deal

28 August 2020

Archant calls on CVA and pension lifeboat in rescue deal

Archant, one of Britain’s oldest newspaper publishers, is turning to the pension’s lifeboat in a rescue deal which will involve steep cuts for creditors. This will underline the harsh realities being faced by regional media groups among COVID-19.

Rcapital has struck a deal with the publisher to invest in the business if a company voluntary arrangement is approved. This CVA would affect creditors.

The deal also involves Archants’ pension and life assurance scheme entering a pension protection fund (PPF) assessment period. This will occur once its holding company, Archant Limited, goes into an administration process of which KPMG will oversee. The use of a PPF assessment period would mean many pension scheme members will end up receiving fewer retirement benefits than they had hoped – with shortfalls reaching up to thousands a year. The PPF would hold a minority shareholding in the publishers’ operations so that if there is any future recovery in the business, it can benefit.

These restructuring arrangements replace the expected pre-pack administration route, meaning a direct impact on the workforce is not, as of yet, applicable.

 The New European and the Eastern Daily Press are among the titles Archant own.

Categories: CVA, Administration

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