CVAs – a quick guide for UK landlords and other creditors when faced with a CVA proposal
There has been a significant increase in the use of CVAs, in particular in the retail and hospitality sector over the last 12 to 24 months, largely impacting landlord creditors.
A CVA proposal can often run to hundreds of pages, and understanding what it means, how it impacts creditors and whether the terms offer a fair outcome can be difficult. Should a creditor vote in favour (or not)? Are there grounds for challenge? Our quick guide helps identify areas to consider when contemplating the answer to those questions.
While primarily considering the position of landlord creditors, the guide sets out points which are helpful to all creditors and also corporates who might be considering a CVA and how best to structure that to avoid challenge.