Bookmark Email Print page

Deloitte appointed nominees to Your Space PLC, Workspace (North West Limited) and Your Space (UK) Limited (together “the Group”)

Publish date:

Your Space PLC, Workspace (North West Limited) and Your Space (UK) Limited (“the Group”) today announces measures proposed to address its current financial position. The directors of the Group have finalised the terms of a company voluntary arrangement (the "CVA Proposal") and have appointed Daniel Butters and Bill Dawson of Deloitte, the business advisory firm, as Joint Nominees.

Commenting on the CVA Proposal, Chris Phillips, Non Executive Chairman, said:

"This announcement details the continuing steps we are taking to implement the strategy necessary to secure the Group’s long term future. With the support of the Bank of Ireland and the Company’s other secured creditors, the board is strongly of the view that the CVA proposal is in the best interests of the Group and its stakeholders as a whole."

Your Space PLC is listed on the Alternative Investment Market (“AIM”), and is a provider of serviced office space and developer of property, both for sale and its own use. As a result of a downturn in activity and asset values in the property market, the business has faced challenges in securing increased occupancy rates to target levels, which has ultimately had an adverse impact on trading performance.

Following a number of attempts to restructure the business, the directors have identified that a CVA will be the most appropriate process through which a restructuring of the Group can be achieved.

Should the CVA proposals be approved by the creditors and members of the Group, a dividend of approximately 20p in the pound will be repaid to the unsecured creditors, with the potential for up to a further 40p in the pound payable of the Group meeting certain trading targets, and if the Group sell the properties it currently owns, and there is a surplus after the secured creditors are repaid, this will be paid to unsecured creditors.

The Bank of Ireland, the Group’s secured lender, has confirmed its support for the CVA proposal. Her Majesty’s Revenue and Customs, the largest unsecured creditor across the Group by value, has reviewed a draft of the CVA proposal and agreed to consider it favourably. The Group’s main landlord has also announced its support for the CVA.

Daniel Butters, Partner in the Reorganisation Services practice in Deloitte’s Leeds office, said: “This CVA allows the business to remain as a going concern and to maintain its trade. It offers job security to employees and certainty to its trading partners.

“The use of a CVA will result in a greater return to creditors compared to alternative insolvency procedures such as an Administration or liquidation. The growing use of CVAs demonstrates that in the appropriate situation Administration can be avoided.”

The CVA Proposal needs the support of 75% of the unsecured creditors and 50% of the Group’s members to be approved.

The meeting of members and creditors to vote on the Proposal will take place on Monday 16 November at 12:30pm at Deloitte’s office in Leeds.

ends

Note to editors:

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.

Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk\about for a detailed description of the legal structure of DTT and its member firms.

The information contained in this press release is correct at the time of going to press.

Last Updated: 

Contacts

Name:
James Igoe
Company:
Deloitte LLP
Job Title:
Phone:
+44 (0) 20 7303 8247
Email
jigoe@deloitte.co.uk
Name:
Vimala Camadoo
Company:
Deloitte LLP
Job Title:
Phone:
+44 (0) 20 7007 5098
Email
vcamadoo@deloitte.co.uk

Related Links