Background
BHS agreed a CVA with its creditors in March 2016. As with so
many large, high-profile CVAs the key issues for BHS were the
rental burdens arising out of their store network- they are known
as "landlord CVAs".
The CVA followed a now common format where landlords were placed
into different categories according to the viability (or otherwise)
of the specific premises , the top category benefitting from the
least interference with lower categories taking increasingly
substantial reductions in rent. There was a provision (clause 25)
which stated that on termination under that clause "the
compromises and releases effected under the terms of the CVA shall
be deemed never to have happened". Furthermore, a landlord
creditor was entitled to send a notice demanding payment within 14
days of sums due and if payment were not made, a further notice
could bring about the termination of the CVA on receipt by BHS. One
of BHS' landlords served the relevant notices on BHS
