At A Glance
Debenhams has successfully defended the challenge to its company
voluntary arrangement ("CVA") in the first test case in
the current wave of CVAs.
In a resounding victory and what will no doubt become the
leading case on CVAs, the English court confirmed that CVAs can
compromise landlords' claims for future rent, upholding the CVA
as valid and enforceable — subject to the removal of
provisions waiving landlords' right to forfeiture.
Kirkland advise a committee of Debenhams' bondholders who
are now lead shareholders following a debt-for-equity swap via
pre-pack administration in April 2019.
Kirkland team members were present during the entirety of the
five-day trial at the High Court in London.
