Silentnight creditor meeting postponed

KPMG INSOLVENCY PROFESSIONALS have postponed a creditor meeting at family-run mattress business Silentnight.

The creditors were due to meet at midday today to vote on a company voluntary arrangement (CVA) that would see the business stave off administration.

At the request of stakeholders including the largest creditor – the Pension Protection Fund – KPMG practitioners have moved the meeting back to 12 May.

A source close to the case said pension fund trustees needed more time to go through the paperwork.

CVAs usually repay a portion of debt owed to creditors over a contracted period of time while allowing the business to continue trading. A CVA must be voted for by 75% or more, by value, of creditors for approval.

As part of the proposals, creditors are likely to receive 65p for every pound owed.

The business ran into trouble after lenders pulled back credit facilities and left the business facing a £100m pension hole.

A statement from Silentnight said: "The adjournments have been agreed with all stakeholders and follow extensive discussions between the company, the nominees and the Pension Protection Fund, which is the largest creditor in the three companies.

"We apologise for the additional uncertainty, however we would reiterate that the business continues to trade as normal in the meantime."

It is likely David Costley-Wood from KPMG will be appointed supervisor of the CVA.