Hotel chain Travelodge are in the process of proposing another Company Voluntary Arrangement (CVA) to its creditors who will vote on the CVA on 19 June.
The CVA is aiming to vary the terms of the leases. Travelodge has refused to pay its second quarter rent and the CVA will see the rents for some properties cut by up to 40% to the end of 2021. The landlords affected have formed an action group in response to the CVA as they believe that they are being unfairly prejudiced by the CVA and have made their own proposal to Travelodge which they claim has been ignored.
It will be interesting to see the outcome of 19 June – watch this space!