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JJB finalizes company voluntary arrangements terms
08 Apr '09
3 min read
JJB Sports PLC, one of the UK's leading sports retailers, announces an update in relation to the series of measures intended to address the Group's current financial difficulties and to create a stable financial platform for the revitalisation of its core sports retail business.
Highlights
- The directors of the Company and its wholly owned subsidiary, Blane Leisure Limited ("Blane"), have finalised the terms of company voluntary arrangements to compromise claims of landlords of approximately 140 closed retail stores and temporarily vary the terms of the leases of approximately 250 open retail stores to permit monthly rent payments (the "CVA Proposal").
- Pursuant to the terms of the CVA Proposal, landlords of closed retail stores will be able to make a claim against a total aggregate fund of £10 million, with payments from that fund in two instalments (the first instalment of £5,000,001 on 30 September 2009 and the balance of £4,999,999 on 31 December 2009).
- The detailed terms of the CVA Proposal, including details for the meetings, are contained in the document (the "CVA Proposal Document") that was posted to unsecured creditors and shareholders of both the Company and Blane.
- The Company has executed documentation for a short term £25 million term loan with Barclays and a medium term £25 million revolving facility with Bank of Scotland plc (a subsidiary of Lloyds), with both facilities only available to the Company once the CVA Proposal is approved and becomes effective.
- Subject to shareholder approval, the Company intends to issue warrants to BoS (or an affiliate of BoS) in connection with their continuing support of the business.
- Further information in relation to the warrants, including details for the general meeting, is contained in the shareholder circular (the "Shareholder Circular") that was posted to JJB shareholders.
Commenting on the CVA Proposal and the new financing arrangements, Sir David Jones, Executive Chairman, said: "This announcement details the continuing steps we are taking to implement the strategy necessary to secure JJB's long term future. Following the initial announcement of our CVA Proposal we have had a number of discussions with some of our key stakeholders, including our landlords. We are very encouraged by the initial feedback from these discussions with key stakeholders and hope their continued support will ultimately allow us to focus on realising the full potential of the Group's core sports retail business. 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."
Highlights
- The directors of the Company and its wholly owned subsidiary, Blane Leisure Limited ("Blane"), have finalised the terms of company voluntary arrangements to compromise claims of landlords of approximately 140 closed retail stores and temporarily vary the terms of the leases of approximately 250 open retail stores to permit monthly rent payments (the "CVA Proposal").
- Pursuant to the terms of the CVA Proposal, landlords of closed retail stores will be able to make a claim against a total aggregate fund of £10 million, with payments from that fund in two instalments (the first instalment of £5,000,001 on 30 September 2009 and the balance of £4,999,999 on 31 December 2009).
- The detailed terms of the CVA Proposal, including details for the meetings, are contained in the document (the "CVA Proposal Document") that was posted to unsecured creditors and shareholders of both the Company and Blane.
- The Company has executed documentation for a short term £25 million term loan with Barclays and a medium term £25 million revolving facility with Bank of Scotland plc (a subsidiary of Lloyds), with both facilities only available to the Company once the CVA Proposal is approved and becomes effective.
- Subject to shareholder approval, the Company intends to issue warrants to BoS (or an affiliate of BoS) in connection with their continuing support of the business.
- Further information in relation to the warrants, including details for the general meeting, is contained in the shareholder circular (the "Shareholder Circular") that was posted to JJB shareholders.
Commenting on the CVA Proposal and the new financing arrangements, Sir David Jones, Executive Chairman, said: "This announcement details the continuing steps we are taking to implement the strategy necessary to secure JJB's long term future. Following the initial announcement of our CVA Proposal we have had a number of discussions with some of our key stakeholders, including our landlords. We are very encouraged by the initial feedback from these discussions with key stakeholders and hope their continued support will ultimately allow us to focus on realising the full potential of the Group's core sports retail business. 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."
JJB Sports
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