Oddbins seeks administration
Wine retailer seeks administration days before creditors vote on Deloitte administrators' CVA proposal
WINE RETAILER ODDBINS is seeking administration just days before a vote on a Deloitte proposal for a company voluntary arrangement (CVA) is to take place.
Oddbins said the administration is “purely precautionary” and is being sought to stop any creditor claims against it for ten days, the Financial Times reports.
A CVA allows a company to repay creditors a percentage of debts owed, over a contracted period of time. However, for a CVA to be approved more than 75% of creditors, by value, must vote in its favour.
The vote is scheduled for 31 March.
Deloitte partners Lee Anthony Manning and David Smith were appointed CVA nominees to the company on 15 March. If it is approved they will become CVA supervisors.
As part of the CVA it is proposed 89 stores will pay 30% less rent and 39 shops will close with those landlords receiving five months rent.
The Deloitte partners estimate creditors will most likely receive 21p for every pound owed in a CVA, compared to 13.6p in an administration.
(Picture © Kake Pugh, via Flickr)