The increasing popularity of CVA’s and the consequential impact on commercial leases

With the UK set to slowly emerge out of its third national lockdown, the impact of COVID-19 on many businesses has been devastating. As emergency measures may soon be phased out by the UK Government, insolvency experts have predicted that a fresh wave of COVID-19 related insolvencies are on the horizon, set to crash down on the UK in the Spring months and beyond. The growing use of CVAs by a number of retail and hospitality tenants has been utilised to the detriment of their commercial landlords. Ahead of the coming ‘Wave on the Horizon’, commercial landlords should be aware of the potential impact that a CVA can have and recognise their legal options when faced with the same.

Learning outcomes:

• A reflection on current market conditions and COVID-19 related current affairs – what are the coming
  months likely to bring?
• A summary on the basics of a CVA – what is a CVA? How does it come into effect?
• The impact of CVAs on a lease – what provisions have featured in recent CVAs?
• Challenging a CVA – how can CVAs be challenged? Is it worth challenging a CVA?
• Takeaway Tips – what commercial considerations should landlords take when faced with a CVA?