Further Blow For Landlords' CVA Challenge

A week after the hearing of the New Look CVA challenge, the same Judge was back in court with the same lawyers, but, save for one point, the result was the same - another unsuccessful CVA challenge by a landlord.

The latest landlord CVA challenge arose out of the hairdressing chain, Regis UK. Subsequent to the CVA being approved by creditors, the company went into administration and the CVA failed.  The company played no part in the court proceedings, but the landlords continued their challenge seeking relief against the nominees and a return of their fees drawn.

The challenge was based on various grounds.  Firstly, a lack of disclosure of transactions, which the Judge partially agreed with, but found that the failure to disclose did not constitute material irregularity on the facts.