Park First Statement: 06 December 2019
SUBJECT: PARK FIRST ADMINISTRATION
On 25 November 2019 the Park First investors voted for Smith and Williamson being given consent to continue as joint administrators for the following companies:
Park First Freeholds Ltd, Park First Glasgow Rentals Limited, Park First Gatwick Rentals Limited, Help Me Park Gatwick Limited (all in administration) (together the “Companies”).
A statement from Smith and Williamson as joint administrators of the Companies confirming the present situation has been sent to all investors/creditors and is available to download on the website www.smithandwilliamson.com/park-first
It has been a lengthy and complex process to get to this stage. The joint administrators are now continuing to progress their analysis of the different options available for those Companies, in order to bring about our solution for creditors as efficiently as possible.
As explained in our letter dated 15 November 2019, amongst the options Smith and Williamson as joint administrators of the Companies will explore, is the issuance of a restructuring proposal for the Park First Group in the form of a Company Voluntary Arrangement (CVA). We on behalf of Group First Global Limited and companies in the Park First Group (not the Companies in administration) believe we will be able to clearly demonstrate the CVA route will be beneficial to all our investors offering the best solution available.
It is, of course, important to recognise Smith and Williamson as joint administrators of the Companies are independent of Group First or any associated company of Group First. The joint administrators are duty-bound to explore all options for the Companies and will only propose a solution that they believe will offer investors the best financial outcome available for all investors/creditors in comparison to any alternatives. Investors will be given the opportunity to vote on the proposals to decide whether to accept this restructuring proposal or reject it and therefore creditors have complete control over that process.
The CVA is envisioned to settle all claims from investors/creditors of the Companies in the following categories, as well as certain other contingent and unsecured creditors:
- Investors and creditors who have chosen the ‘buy-back’ option
- Investors and creditors who have chosen the ‘lifetime lease’ option
The core proposal will involve:
- The continuation of the car parking businesses
- The preservation of investors’ interests in the car parks
- Resumption of payments to all investors for their rent
- Settlement of the amounts owed to investors who have opted for the ‘buy-back’ proposal made in 2017
- Investment in the car parking businesses which will enhance the value of the investments and further protect investors’ interests.
This will allow us to make a financial contribution to the car park businesses of circa £33 million (gross) via a formal restructuring process of CVA.
This investment will be used to fund the proposal and to address claims of ‘buy-back’ investors and the interests of ‘lifetime lease’ investors and certain other unsecured and contingent creditors. These significant financial contributions would not otherwise be available without in complex, lengthy and risky litigation.
Finally, Group First would like to thank all Park First investors for their ongoing patience and support as all parties work to find a solution for all investors and creditors as quickly as possible.
For and on behalf of Group First Global Limited.
Telephone +44 (0) 1282 330 330