2018 was seen by many as the ‘year of the CVA’ and the year of the so -called ‘Retail CVA’ in particular. Such CVAs have been used in an attempt by companies operating in the retail and casual dining sector with burdensome leases to reduce the cost of their premises whilst continuing to trade.
2019 was widely expected to be the year in which there was a challenge by a landlord under s.6 of the Insolvency Act 1986 (‘the Act’) to the use of CVAs to force a rent reduction, without comparable cuts to other creditors and so it has proved.
Recently, the British Chamber of Commerce (BCC) warned that economic conditions are weakening and businesses are struggling, following a survey they have conducted of 6,600 companies employing 1.2 million workers. Their research found that domestic and export sales are falling, and services firms have seen a decrease in work in the three months to September. This has prompted fears that the UK’s economy may fall into recession.
Summary
Case:Pantiles Investments Ltd & Anor v Winckler [2019] EWHC 1298 (Ch)(23 May 2019)
In a recent case the High Court has addressed how Company Voluntary Arrangements affect landlords when balancing the needs of a commercial tenant to restructure its debts.
In September 2019, Debenhams Retail Limited entered into a Company Voluntary Arrangement (CVA) with its creditors, with the aim of restructuring its debts. The CVA contained a number of provisions affecting Debenhams' landlords (themselves potentially creditors) in respect of its various department store leases.
Five Elements for Chinese Companies trading with UK counterparts Part 1: Gold
中英企业交易中的“五行”元素——第一部分：金
在与向英国供货的国际公司合作的过程中，我们发现了一些常见问题。本系列五篇文章围绕“五行”的各个元素展开探讨，指出了供应商在和英国客户做生意过程中面临的关键风险，以及供应商如何才能最好地保护自己，从而确保其商务活动和商业关系的和谐。第一个元素“金”确保供应商得到应得的货款，避免或尽量减少风险、困难和难以解决的困境。
金：及时获得全额付款，让您的业务和商业关系发展壮大
在协助我们的国际贸易客户处理的各种事项中，最常见的是追款。因此，我们建议所有供应商在签订合同或根据标准商业条款向客户供货时，确保在客户违约的情况下尽可能让自己处于最有利的境地。
对供应商而言，最有利的索赔是财产索赔。根据所有权保留条款，在客户未付清货款前，供应商仍对交付给客户的货物拥有所有权。如果客户破产，供应商有权收回货物（或收取货款）。
其他合同保护措施包括：
In the past five years, insolvency rates in the construction industry have increased more quickly than in other industries across the UK. This article considers the common causes of construction insolvency and how to protect your position if insolvency occurs.
Recent trends
Originally published on LexisLibrary and LexisPSL
Restructuring & Insolvency analysis: Thomas Cook is the third large company to be wound up by the courts in 18 months, following British Steel and Carillion in 2018. Professor Andrew Keay, barrister at Kings Chambers, 9 Stone Buildings and Lincoln’s Inn and Professor of corporate and commercial Law at the University of Leeds, discusses why it entered liquidation rather than administration and how it will impact employees and customers of Thomas Cook.
Original news
Agriculture may be the (second?) oldest profession, but it is one that remains ever relevant to modern day life. Farmers are not only producing food, they are also environmental stewards through no other reason than they are the people literally on the ground and on the front line.
Retail Company Voluntary Arrangements (CVAs) are becoming an increasingly popular means of minimising liabilities and creating breathing space for tenants during a difficult trading environment on the High Street. Where does this leave landlords?