On Monday (17th May 2021) The High Court approved property owners’ legal challenge to the Regis CVA.
Melanie Leech, Chief Executive, British Property Federation commented:
“Today’s verdict will be very welcome news for property owners up and down the country. Mr Justice Zacaroli is sending a very clear message to the market – CVAs cannot be about hurting property owners to simply increase value for your shareholders, discounts on property owners’ claims must be reasonable and justified, and insolvency practitioners have a duty to ensure CVA proposals are fair.
“This abuse, where a CVA is not just about rescuing a business from insolvency, but about transferring value from property owners to a business’ shareholders, must stop – today’s ruling means businesses and their insolvency practitioners cannot continue to prejudice property owners’ interests. A fairer business rescue culture will be vital for the millions of pensioners and savers invested in UK commercial property.”
