The company voluntary arrangement (CVA) is an insolvency process that has raised significant concern amongst commercial property owners in recent years about their use by tenant companies to change lease terms, write off arrears and recalculate future rental liabilities. Some property owners feel that they have been unfairly targeted by CVAs, particularly in the retail and casual dining sectors, to the benefit of other creditors.
This is the context for a research paper commissioned by the Insolvency Service and published on 28 June 2022. The central question asked of the researchers was “Are landlords equitably treated, compared to other creditors, in large business CVAs…?” to which the answer was “broadly” yes they were. But what are the details behind this broad conclusion, and what should property owners take from the report? Here are 10 key takeaways:
Authored by Mathew Ditchburn.
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