Corbin & King has fought off a Hight Court challenge to a proposed multi-million rescue package, leaving it free to pursue funding from US investment firm Knighthead, the FT has reported.
In a hearing on yesterday (15 February), a subsidiary of Thai hotel operator Minor International – the London-based restaurant group’s biggest shareholder with a 74% stake – attempted to block it from repaying debt to the Thai company, after Minor sought to call it in.
Minor sought £34m in the repayment of loans within 24-hours, as part of a long-running dispute, which saw administrators appointed to Corbin & King last month.
MI Squared sought to stop co-founders and partners Jeremy King and Chris Corbin from accepting financial backing from Knighthead Capital in order to repay the debt to Minor, claiming it breached their shareholder agreement.
At the time the business was put into administration, King told MCA the development was a “power play” which he planned to thwart by buying Corbin & King out of administration.
Justice Foxton said he was “not persuaded” to grant the injunction and would set out his reasoning in a ruling today.
FFP Recovery, who are the administrator to Corbin & King said there had been as many as 30 expressions of interest for the entire business.
According to a statement by King in court, Knighthead had offered to buy the group’s assets for £45m as well as offering a loan to refinance al the debts including the sums owed to Minor, in order to avoid insolvency.
