Powerhouse hits back at CVA claims

The chairman of Powerhouse, the company that is going to the High Court to
vindicate its CVA proceeding, has hit back at claims that the move could wipe
billions of pounds off the UK property market.

Bruce Gordon, argued that such claims were simply ‘hysteria’.

‘The only other option besides entering a CVA was liquidation,’ said Gordon.

He said that part of the deal provided property companies from whom
Powerhouse was no longer leasing with some funds to help them re-let.

Commercial property companies are set to battle against the CVA in the courts
later this year. They will argue that if the CVA is upheld it would undermine
the value of parent company guarantees.

Law firm Lovells is representing some of the biggest commercial property
companies against Powerhouse, including Prudential and Land Securities.

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