Zolfo advisers secure Bella Italia/Café Rouge CVA

by Kevin Reed

More from this author

23 Jun 2014

  • Comments
Cafe Rouge

ZOLFO COOPER senior insolvency advisers will supervise company voluntary arrangements (CVAs) at Bella Italia and Café Rouge, after debt restructuring deals were agreed by a majority of creditors.

Peter Saville, Alastair Beveridge and Catherine Williamson of Zolfo Cooper's Restructuring Services team will supervise the deal, agreed between restaurants owner Tragus and landlords, which reduces Tragus' debt by £263m.

A CVA is an insolvency process where an agreement is made with creditors that reduces the company's debt burden and sees debt repaid over a pre-determined period. Insolvency practitioners mediate and supervise the deal.

The deal sees 150 properties retained at current rents, paid monthly instead of quarterly. Rents are reduced at 60% of current levels for 19 properties, while a further 32 will have rent reduced to 50% for three months.

Where rent levels have been reduced, a compromise payment will be made to landlords.

"The CVAs were carefully designed to provide the best outcome for all stakeholders and we are delighted that the proposals have been approved by such a large number of creditors," said Saville.

"The approval of the CVA proposals will create a more sustainable business and we are pleased to see such a high level of support from the group's landlords. This enables Tragus to restructure its business for a sustainable future and to preserve jobs by focusing on a more profitable core estate."
Zolfo's corporate finance team are working with Tragus' other restaurant company, Strada, to help secure new equity for the 56-site brand.

Paul Hemming, a corporate finance partner in Zolfo Cooper's Advisory Services practice said: "Since we started the process earlier this month, we have had a large number of highly credible expressions of interest. We will continue the process, working towards the best outcome for all stakeholders. This should be achieved by the end of the summer."

Visitor comments

blog comments powered by Disqus

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

  • Send

Charterhouse Accountants

Finance Officer

Charterhouse Accountants, Beaconsfield, Permanent, Full Time, £ Competitive




Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials


Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you



Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.


iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.