M&G drops Debenhams CVA legal challenge

M&G Real Estate has withdrawn its legal challenge against Debenhams Group on the troubled retailer’s company voluntary arrangements. Debenhams has said that M&G has agreed to drop the court action on its CVAs. However, legal action from Sports Direct and Combined Property Control remains outstanding. The department store urged the pair to follow suit, asserting that their claims were “completely without merit and should be dismissed”. Debenhams’ CVA proposals received support from 97% and 94% of creditors respectively voting in favour of the two insolvency procedures, including more than 80% of landlords in each case. The minimum vote required was 75%. See also: Debenhams proposes 22 store closures through CVAs Terry Duddy, chairman of Debenhams, said: “I am pleased that M&G has recognised the necessity for the CVAs and that, as a result of the discussions we have had, it has withdrawn its challenge. “I call on Sports Direct and CPC to do the same. If they do not, we will seek to have it thrown out. In the meantime, we continue to make good progress with the company’s restructuring plans.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette