Car park operator NCP has decided to “temporarily” suspend its controversial restructuring plan, as it weighs up its takeover approaches.
NCP’s radical rescue proposals involve imposing heavy rent cuts on its landlords, as well as 41 closures, in a cross-class “cram down” process.
The decision comes after US car parking giant Reef and private equity firm Bain Capital tabled a bid to take control of NCP, as reported by Sky News earlier this week. The takeover bid was purportedly made less than 48 hours before creditors were due to vote on the plans.
A spokeswoman for NCP said: “The restructuring committee of NCP is currently giving full consideration to all options available, including non-binding offers for the company.
“While there can be no certainty that the offers will result in an executable transaction, the directors of NCP have today decided to temporarily suspend the restructuring plan in its current form to allow NCP sufficient time to explore whether the offers represent a better outcome for creditors than they would receive in the restructuring plan as currently proposed.”
A group of landlords have been planning to kick NCP out of their premises in response to the restructuring, according to The Telegraph. However, the government has since announced that the ongoing ban on commercial tenant evictions will be extended to March 2022.
“While the government’s extension yesterday to the moratorium on commercial rents is welcome, we are still seeking greater clarity on the finer detail of what this means for NCP,” said the NCP spokeswoman.
“We recognise this has been a very unsettling period and it is critical to end uncertainty for our 1,000-plus employees, landlords and other stakeholders as soon as possible to bring stability to NCP and enable it to move forward with its business plans.”
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