In February Stylo Barratt, the UK shoe-shop owner facing
insolvency, offered its creditors a deal. The company voluntary
arrangement (CVA) it proposed needed 75% approval to pass,
allowing Stylo to continue as a going concern while it
restructured its finances. Without an agreement administrators
would move in and 5,400 jobs would be lost. The CVA failed,
with landlords reluctant to support a deal that subordinated
their claim and offered no guarantee of continued tenancy.
But just two months later, sports retailer JJB launched its
own CVA, and received over 99% creditor approval at a meeting
on April 29. The Arrangement made it through a mandatory 28-day
appeal period unchallenged, and new financing arrangements
started to be drawn down on June 3. According to all parties
involved this was down to the more realistic ambitions of JJB,
and the drafting of a document that offered the best...