02 May 2021
Car park operator NCP starts a court process to help cut its rents and exit contracts for unprofitable parking facilities.
This comes almost a month after it was shared by Sky News that the BPF began arranging calls with NCP landlords as they faced demands to write of rent arrears.
The Covid pandemic has heavily impacted NCP. They have experienced falls in revenue by 80%.
Park24, its Japanese owner said the firm will look to withdraw funding if its restructuring is not a success. This restructring is the operators ''last resort'' to save the businesses future and the livelihoods of its 1,000 staff.
''NCP remains committed to working constructively with its landlords and all of its creditors and delivering a long-term mutually beneficial outcome for them through this restructuring plan''.
BBC News report more.
10 April 2021
It has been shared by Sky News that the British Property Federation (BPF) has begun arranging calls for NCP landlords next week as they face demands to write off substantial rent arrears.
AlixPartners and law firm, Hogan Lovells, are rumoured to have been lined up by a group of landlords to advise them in a bid to overturn NCP’s proposals.
The plans have been proposed with use of the controversial new legal structure; the Part 26A process. If approved by the court it would force landlords to accept the new rent terms even if they oppose them.
The majority owner has pledged a £120m capital injection for a period of the next two years. The restructuring plan will be launched only if sufficient enough support is gained from landlords next week.
If the restructuring is not implemented a collapse is likely for NCP.
Who are NCP?
Car park operator, NCP are owned by Park24, a listed Japanese company and the Development Bank of Japan. It trades from more than 500 sites across the UK.