Tasty, the operator of Wildwood, is exploring a potential company voluntary agreement (CVA).
Tasty said no decision had yet been made, but it working with advisers KPMG to assess the impact of coronavirus on the business, and the strategic options available to the Company, including a potential CVA.
The company is due to start consensual negotiations with landlords and other creditors shortly, and anticipates this process will be completed by the end of November 2020.
The board believes that with new regulations and the likelihood of tighter restrictions in the near future, all potential options should continue to be explored but, with creditor assistance, a more formal procedure may be avoided.
The company has secured a £1.25m, four-year term loan from its bankers Barclays, in order to strengthen its balance sheet and provide additional working capital support.
The facility is available to be drawn down until 7 February 2021, but is restricted until the future of the company is assured through restaurant closures and creditor arrangements.
It has a capital repayment holiday of 12 months and carries interest at a rate of 4.5% per annum over the Bank of England Base Rate, following draw down.
Precis
Tasty explores potential CVA
Tasty, the operator of Wildwood, is exploring a potential company voluntary agreement (CVA). Tasty said no decision had yet been made, but it was working with advisers KPMG to assess the strategic options available. The company is due to start consensual negotiations with landlords and other creditors shortly, and anticipates this process will be completed by the end of November 2020. Tasty hopes with creditor assistance ”a more formal procedure may be avoided”. The company has secured a £1.25m, four-year term loan from its bankers Barclays, in order to strengthen its balance sheet and provide additional working capital support.
