We reported in June last year on the challenge brought by landlords to the terms of a company voluntary arrangement (CVA) which had been making headlines in the property press. The Powerhouse case is a challenge by a number of high profile landlords to the terms of Powerhouse’s CVA which proposed that Powerhouse continued to trade profitable stores, having closed its loss making stores. All creditors are to be paid in full save for landlords of the closed stores. Additional, and more significantly, the CVA sought to release the guarantees given by Powerhouse’s parent company, Pacific Retail Group.
As promised we continued to follow the progress of the Powerhouse CVA challenge. To update you, the High Court has now ordered a hearing to decide the case due to start on 21 March 2007.
We will report to you in more detail once the outcome of the hearing is known.
For details of our previous law-now on this topic please click here.
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Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 07/03/2007.
