Department store group Debenhams issued the following statement today (Wednesday March 11): “The Debenhams Group confirms that all relevant procedural matters dealt with at the recent CVA challenge hearing in February have been concluded in its favour, and that the time period for any appeal to be lodged has now expired.
‘Other than certain outstanding matters relating to costs, the entirety of the CVA challenge process is now concluded and the CVA remains effective.
‘This outcome will allow the Group’s shareholders to proceed with the final phase of its debt restructuring in due course, which is expected to take the form of a Scheme of Arrangement resulting in the conversion of at least £100 million of debt to equity. This will reduce the Group’s indebtedness and provide a robust platform for Debenhams’ continuing recovery.’
Stefaan Vansteenkiste, ceo of Debenhams, commented: “This is great news for Debenhams. We can put the distraction of this litigation behind us and proceed with our plans to turn the business around. With committed investors, a strengthened board and a restructured balance sheet, we have the platform from which to rebuild a sustainable business.”