Carpetright PLC CVA: Result of Creditors' Meeting (2888M)

TIDMCPR

RNS Number : 2888M

Carpetright PLC

26 April 2018

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM AUSTRALIA, CANADA, JAPAN, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT

This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation. Other than where defined, capitalised terms used in the announcement have the meanings given to them in the CVA Announcement or the CVA Proposal Document made available to shareholders on 12 April 2018.

LEI: 213800GO32BSNNHXID90

Carpetright plc

("Carpetright" or the "Company" or the "Group")

CVA: Result of Creditors' Meeting

On 12 April 2018, Carpetright announced the details of the terms of the CVA Proposal proposed by the directors of the Company and that the CVA Proposal Document had been made available to unsecured creditors and shareholders of the Company (the "CVA Announcement").

The Creditors' Meeting was held today to consider the CVA and the Company is pleased to announce that the CVA was approved by a majority of more than 75% in value of the unsecured creditors of the Company present at the meeting in person or by proxy (including by the requisite majority of those unsecured creditors which are unconnected with the Company).

As set out in the CVA Proposal Document, the CVA Shareholders' Meeting will be held at 10.00 a.m. on 30 April 2018 and the result of the meeting will be announced as and when available. In accordance with the statutory provisions, if shareholders do not approve the CVA, the decision of creditors will prevail, subject to the right of any shareholder to apply to court to challenge the approval of the CVA Proposal.

The Company continues to trade under the control of the directors, operating as a going concern. The Company is not in and will not be in administration as a result of the approval by creditors of the CVA Proposal.

As stated in the CVA Announcement, implementation of the CVA will be conditional upon a successful equity capital raising. The Company still expects to launch the equity capital raising on or around 18 May 2018.

Commenting on the approval of the CVA Proposal by creditors, Wilf Walsh, CEO, said:

"Addressing our legacy property issues to reduce our fixed costs to sustainable levels is critical to securing Carpetright's recovery. Receipt of creditor approval for the CVA Proposal will enable us to take tough but necessary action to establish a right-sized estate of stores on economic rents, which is essential to restoring our profitability. Our focus now shifts to the forthcoming shareholder vote and to our preparations for the proposed equity financing which will recapitalise the business and enable Carpetright to address the competitive threat from a position of strength."

 
 Enquiries: 
 Carpetright plc 
  Wilf Walsh, Chief Executive 
  Neil Page, Chief Financial 
  Officer                              01708 802000 
 Peel Hunt LLP (Sponsor and 
  joint broker) 
  Dan Webster 
  George Sellar 
  Nicole McDougall                    020 7418 8900 
 Deutsche Bank AG (Joint broker) 
  Simon Hollingsworth 
  Adam Miller                         020 7545 8000 
 Citigate Dewe Rogerson (Financial 
  PR) 
  Kevin Smith 
  Nick Hayns                          020 7638 9571

Notes to editors

Carpetright plc is Europe's leading specialist floor coverings and beds retailer. Since the first store was opened in 1988 the business has developed both organically and through acquisition within the UK and other European countries. The Group is organised into two geographical regions, the UK and the Rest of Europe (comprising The Netherlands, Belgium and the Republic of Ireland).

This announcement does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to herein have not been, and will not be, registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered, exercised or sold in the United States absent registration or an applicable exemption from registration under the Securities Act.

Peel Hunt LLP ("Peel Hunt") is authorised and regulated by the Financial Conduct Authority (the "FCA") and is acting exclusively for the Company and no one else in relation to the matters referred to herein and is not, and will not be, responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this document or any other matter referred to herein.

Deutsche Bank AG, London Branch ("Deutsche Bank") is authorised under German Banking Law (competent authority: European Central Bank) and, in the United Kingdom, by the Prudential Regulation Authority (the "PRA"). It is subject to supervision by the European Central Bank and by BaFin, Germany's Federal Financial Supervisory Authority, and is subject to limited regulation in the United Kingdom by the PRA and the FCA. Details about the extent of its authorisation and regulation by the PRA, and regulation by the FCA, are available on request or from www.db.com/en/content/eu_disclosures.html. Deutsche Bank is acting exclusively for the Company and no one else in connection with the matters referred to herein, and Deutsche Bank is not, and will not be, responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this document or any other matter referred to herein.

No representation or warranty, express or implied, is or will be made as to, or in relation to, and no responsibility or liability is or will be accepted by Peel Hunt or Deutsche Bank or by any of their respective affiliates or agents as to, or in relation to, the accuracy or completeness of this announcement or any other written or oral information made available to or publicly available to any interested party or its advisers, and any liability therefore is expressly disclaimed.

This information is provided by RNS

The company news service from the London Stock Exchange

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