JJB in the clear on CVA
JJB Sport’s life-saving company voluntary arrangement (CVA) proposal came into effect today.
The troubled chain arranged a CVA last month as a way of placating creditors and avoiding collapse.
Most of the group’s creditors and shareholders had agreed to the plan by April 29 but it could have been de-railed by a court challenge during a month-long period which ended yesterday.
The Wigan-based company said all conditions relating to the CVA had now been satisfied and it now expects the new financing arrangements set out in the CVA proposal to become availalbe “shortly”. A further statement is expected in the next few days.
The CVA centred around the landlords of 140 closed JJB shops owed a total of £12m. JJB ringfenced the closed stores into a new business called Blane Leisure, and asked the landlords to share a pot of £10m in settlement for what they are owed.
The group’s financing arrangements hinge on a £50m facility from Barclays and Bank of Scotland which was conditional on the CVA being accepted.
