Park First Statement: 13 March 2020
13th March 2020 – Park First Statement
We write to you following our last communication and statement posted on our website regarding the Gatwick and Glasgow car parking businesses posted on 6 December 2019.
As explained in our previous communications and also by the Joint Administrators of 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”), we are working with the joint administrators so that they can present to you the terms of a restructuring in the form of a Company Voluntary Arrangement (“CVA”) for each of the Companies.
We believe that the CVAs will provide the best outcome for all investors, both those who hold a Lifetime Lease and also those who have opted for a Buyback of their parking space.
The Joint Administrators will put the proposals for a CVA to the Companies’ Creditors when these have been developed further and when they consider this to be appropriate. The Joint Administrators have stated that this will be when they have determined that the proposal on offer is the best outcome for the investors and creditors and they have confidence that the Companies will be able to continue to trade profitably after they exit from administration. Group First Global are strongly committed to working with the Joint Administrators to support their proposals for CVAs.
We consider that the CVAs will achieve the following objectives:
- Provide funding for payments to the Buyback investors.
- Secure the continuation of the car parking businesses for the benefit of the Lifetime Lease Investors.
- Resuming payments to investors for their rent.
- Preserving and improving investors’ interests in the car parks.
A key element of the CVAs will be to demonstrate that they will provide a better return for investors and creditors.
Subject to agreement with the Administrators and with the FCA, a cash injection of £33m, before costs, could be agreed by group companies with a view to ensuring that the outcome is beneficial for all creditors. If such a cash injection is made, Buyback investors will receive a substantial repayment of the sums due to them and the cash injection will ensure that there will be funding to pay rents due under the Lifetime Leases. Investors will be given the opportunity to vote on any CVA proposals and full information will be provided to the creditors on any such proposals prior to any vote.
These are all matters that Group First is keen to discuss and engage in with the Joint Administrators.
It is regrettable in our view that matters have not been progressed more quickly. We believe that this is attributable to ongoing liaison between the Joint Administrators and the FCA which has now progressed (we refer to page 6 of the Joint Administrators update of 30 January 2020). We very much hope that an agreement as to the next steps can be reached as soon as possible so that discussions can be continued and the CVA proposals finalised and put to creditors.
Creditors and investors will also be aware that the FCA brought legal proceedings against certain Group companies in October 2019. A detailed defence to the FCA’s claims was filed with the Court at the end of February and the proceedings will be strongly contested. The FCA are not litigating against any of the Park First companies in Administration.
Group First would like to thank all Park First investors for their ongoing patience and support. We look forward to being in a position shortly to write to you again with a more detailed update on the next steps regarding our restructuring proposal.
For and on behalf of Group First Global Limited.