Increasing use of the CVA tool for quoted, household name companies is a welcome development. I note that the board of JJB Sports are considering a CVA for part of their group according to the Sunday Times. Of course we won't know the shape of this until it is in the public domain, if it ever gets there.
Ok Stylo's CVA was rejected because of the landlord backlash, but the premise of the deal was a good one for all parties. Perhaps a little more discussion and better offer to the landlords would have led to an approved CVA, but we were not party to the decision making process or private discussions with the landlords and their advisors.
As far as I am concerned the more listed company CVAs that are written and agreed the merrier. To that end we have a detailed 80 page guide to CVAs that will answer many of the queries you, your board/members or your clients may have on the process. KSA CompanyRescue is happy to send you a free copy upon request.
Should you wish to address the full range of options for your client (or your own company) including pre-pack Administration, liquidation, administration followed by CVA or informal trading out, then you should get expert advisors to look carefully at the current position of the company, its restructuring options and legal obligations.
I am pleased to say we are currently advising two listed companies and using CVA to restructure the businesses, one is listed in the USA with 8,000 shareholders and one in London (AIM with around 600 shareholders). We are also advising a number of private equity funds on rescues that will preserve struggling companies using a CVA.
If you are a private equity investor with a distressed client call me on 07974 086779 now.
Send me an email if you want the guide, we will send it by return: firstname.lastname@example.org