Vol 15 (2018) - Issue 6

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Re SHB Realisation Ltd (formerly BHS Ltd); Wright and another (as joint liquidators of SHB Realisations Ltd (formerly BHS Ltd)) v Prudential Assurance Companies Ltd [2018] EWHC 402 (Ch); [2018] All ER (D) 58 (Mar)

Synopsis
With high street insolvencies on the rise, CVAs have grown in popularity as a restructuring tool, allowing companies to hold on to leases for the purposes of continued trade at a reduced rent, in the hope that this will facilitate rescue. Re SHB Realisations Ltd is a timely decision about the effect of such rent concessions within a company voluntary arrangement. Although elements of the judgment in Re SHB Realisations Ltd turn upon the provisions of the specific CVA, the decision also clarifies some important principles relevant to voluntary arrangements and administrations generally.