Debenhams Creditors Approve Final Element of Refinancing Plan

Creditors of Debenhams, the UK department store group that went into a “pre-pack” administration last month, have approved proposals that will allow the group to close 22 stores and reduce rents on more than 100 more, the Financial Times reported. At a meeting held in central London, votes on the two company voluntary arrangements were passed by 95 per cent and 97 per cent majorities. The CVAs are the final part of a refinancing process that has seen the group’s equity wiped out and its creditors swap £100m of debt for new equity. A group of lenders led by US hedge fund Silver Point Capital now controls the company. Terry Duddy, Debenhams executive chairman, said the company was grateful to suppliers, pension stakeholders and landlords for backing the plan. “We will continue to work to preserve as many stores and jobs as possible through this process,” he said in a statement. Sports Direct, which was the biggest shareholder in Debenhams’ equity when it was still a listed company, is believed to have voted against the proposal. Read more