NCP’s decision to pause restructuring is ‘a victory for landlords’
Car park operator NCP’s decision to “temporarily pause” its controversial restructuring plan has been hailed as a victory for landlords opposed to the deal.
The company had proposed a rescue plan that would impose heavy rent cuts on landlords as well as 41 closures. But on Friday it contacted creditors to say it was pausing the plans while it considered offers from two potential buyers.
“NCP has relented and done what the landlords have been telling them to do all along: have a proper process for considering third-party bids to buy the company, and call a halt to the rushed through and unfair restructuring plan that benefited no one but the existing shareholders,” said Mathew Ditchburn, head of real estate disputes at law firm Hogan Lovells, which is acting for a group of landlords opposed to the plan.
Car park operator NCP’s decision to “temporarily pause” its controversial restructuring plan has been hailed as a victory for landlords opposed to the deal.
The company had proposed a rescue plan that would impose heavy rent cuts on landlords as well as 41 closures. But on Friday it contacted creditors to say it was pausing the plans while it considered offers from two potential buyers.
“NCP has relented and done what the landlords have been telling them to do all along: have a proper process for considering third-party bids to buy the company, and call a halt to the rushed through and unfair restructuring plan that benefited no one but the existing shareholders,” said Mathew Ditchburn, head of real estate disputes at law firm Hogan Lovells, which is acting for a group of landlords opposed to the plan.
Some of the landlords had been working on plans to remove NCP from their premises, according to a report in the Daily Telegraph.
At a hearing last month, lawyers for NCP said the company was fast running out of money and would fall into liquidation or administration if its debts were not restructured by the end of the month.
However, the company wrote to creditors on 18 June, saying it had received two offers from third parties.
“The plan company has received two offers from third parties who have expressed an interest in acquiring the shares of the plan company, subject to completing due diligence and subject to completing a modified restructuring plan on enhanced terms,” the letter, seen by EG, said.
“Despite the significant support received from plan creditors to date in respect of the restructuring plan, and no certainty that the offers will result in an executable transaction, the directors of the plan company have resolved to temporarily pause the restructuring plan on the current timeline in order to allow the plan company sufficient time to explore whether the offers represent a better outcome for plan creditors than they would receive in the restructuring plan as currently proposed.”
Last week, Sky News reported that US car parking giant Reef and private equity firm Bain Capital had tabled a bid to take control of NCP.
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