While the proposed conditions for New Look`s potential CVA are not known, it is estimated that approximately 60 stores will be closed and rent reduced for the rest, so it is likely that stores will be divided into categories based on the treatment they receive under the CVA. One of the issues that New Look and its stakeholders will look at is that all unsecured claims have a voice, that is, even if they are not owners or subject to the proposed lease amendments, so New Look will not just be the tenant that New Look must integrate. As mentioned earlier, creditors would vote together without dividing into classes (regardless of how creditors may be classified under the CVA). Leases may be entered into with operating companies that are separate from the companies through which New Look issued its bonds. Cookies A cookie is a small piece of information sent from a web server to a web browser, which allows the server to collect information from the browser. We may use cookies to personalize your experience and remember things like your username, password, preferences or shopping cart. Most browsers allow you to disable cookies. If you want to know how to do this, please consult the help menu of your browser. If you disable cookies, you may have problems when using certain parts of the website.
«To raise a legal challenge, the owners argued that moving to a revenue-based system fundamentally rewrites leases in a way that has never been done before and is `unfair.` The judge disagreed, in a decision confirming only the owners as piggy banks of the slowly recovering retail sector. Clare Kennedy, managing director of consultancy Alixpartners, said the decision should provide a higher level of certainty for the process and, if government support wanes, could lead to a higher number of CVAs as companies look to resolve both rent arrears and the shift from bricks to clicks.» Disclaimer: We have obtained the information contained in this report in good faith from sources we believe to be reliable, but we do not independently verify the information. The information is not intended to provide tax, legal or investment advice. We will not be liable for any errors, errors, inaccuracies or omissions or incompleteness of the information contained in this report. Any liability is excluded to the fullest extent permitted by law. The data comes from corporate reports, press releases, presentations and information on debt transfers. In this special report, Debtwire`s team of legal analysts briefly examines the context of New Look issues and examines options for implementing a potential restructuring of the retail industry, including CVAs. License our cutting-edge legal content to strengthen your thought leadership and brand. The firm works with Goldman Sachs, Houlihan Lokey, Linklaters and Paul Hastings, while Deloitte advises on its potential CVA. The ad hoc group of bondholders hired Sidley Austin as legal counsel and Rothschild as financial advisor. Several secured bond holders work informally with the law firm Kirkland & Ellis, while some covered bond holders work informally with Hogan Lovells.
Changes to Legal Notice We reserve the right to change these terms and conditions from time to time. New Look owners today lost their legal battle against the High Street retailer`s restructuring plan. Katherine Campbell, head of real estate litigation at Reed Smith, said the decision was «inevitable given the extent to which legal dice are stacked against landlords.» If an amicable financial restructuring proves impossible, New Look could try to use a formal procedure – such as a UK settlement system – to «stifle» dissenting or apathetic creditors. Due to time constraints, a settlement may be planned in parallel with negotiations in order to reach an amicable settlement, in which the settlement is abandoned if a consensual restructuring is concluded. The threat of settlement may motivate creditors to agree to amicable proceedings. Nicola Lucas was appointed to the position, according to a LinkedIn announcement, and took office in early December. Most recently, she was a legal manager at nightclub operator The Deltic Group. Previously, she held internal positions at technology company Kodak Alaris and food company BerryWorld. What is clear, however, is that the bad feeling between landlords and retailers will increase before it gets better, as the decision could trigger another wave of CVAs, as tenants feel the courts will rule in their favor. Other Legal Notice There may be legal notices in other areas of this website that are not included in these terms and conditions. Even if they are not here, they still apply.
New Look`s proposal to move to income-based rents was backed by the majority of creditors, but a group of disgruntled landlords filed a lawsuit against the restructuring plan. Fashion retailer New Look has appointed a chief legal officer as major companies continue to grapple with the financial impact of the COVID-19 pandemic. Some bondholders have formed a committee and brought together legal counsel with other groups that will emerge. Different groups of bondholders may pursue different strategies depending on whether they are peer or hedge fund holders who bought the debt at a discount – debt holders are likely to play a longer game. Last November, Debtwire`s sister product, Xtract Research, examined New Look`s debt capacity, specifically what debt can dilute or prepare its senior secured notes. You can access the report HERE. The report concludes with an estimate of the potential additional debt (or risk) capacity (and priority) of the small group of: up to GBP 100 million in the credit facility basket, up to GBP 75 million in the overall debt basket and that the Group could add approximately GBP 72 million in exposures under approved L/C credit facilities. New Look today rejected a legal challenge to its restructuring plan by a group of its owners in a landmark case that experts say will pave the way for other retailers to use the company`s voluntary agreements to combat the effects of the pandemic. A more sustainable global supply chain We have established and maintained strong strategic relationships with our suppliers in 20 countries as well as with factories involved in manufacturing for us. Our goal is to put ethics and sustainability at the heart of everything we do, inspiring and maintaining high standards in our own business and throughout our supply chain. Privacy Policy Our website uses up-to-date industry procedures to protect your personal information.
We also protect the security of your data during transmission with Secure Sockets Layer (SSL) encryption software. We can change this in the future if we think it will make our website safer. We have implemented appropriate security measures in our business to ensure that any information we have collected from you is not lost, misused or altered. New Look`s debt amounts to more than GBP 1.2 billion and consists of an undrawn revolving credit facility of GBP 100 million, GBP 700 million and EUR 415 million due July 2022 from New Look Secured Issuer plc and £200 million of senior unsecured notes maturing in July 2023; issued by New Look Senior Issuer plc. Although the company has sufficient liquidity at the moment, it faces an annual interest rate of £75 million in the 2018 financial year and around £70 million of committed investments, while annual EBITDA is expected to fall to £30 million, meaning the group could soon face a liquidity gap that could trigger a balance sheet restructuring. CLICK HERE for the capital structure. With New Look`s unsecured debt in the high years and secured debt in the `40s, the value clearly turns into senior debt, suggesting that unsecured debt is being erased, although it may have choral value. In July 2010, New Look opened its three hundredth store at Glasgow Fort Shopping Park. The store measures 18,000 square feet (1,700 m2). It was built on the site of a former Borders store.
The most discussed CVA in recent years is undoubtedly BHS (March 2016), which is a good example of how creditors can be treated differently under an CVA.