TPR and PPF approve plan ahead of Arcadia CVA vote

The Pensions Regulator (TPR) and the Pension Protection Fund (PPF) have approved amendments to Arcadia’s company voluntary arrangement (CVA) ahead of the creditor vote today (12 June).

Although TPR and the PPF have agreed to the latest proposal to save the company and its pension scheme, the plan still requires the backing of 75 per cent of voting creditors and landlords.

Today’s vote comes after it was delayed from the initial meeting on 5 June, when landlords rejected the proposal despite TPR and the PPF’s endorsement.

Arcadia owner Philip Green’s latest plan includes asking landlords to agree to rent cuts of between 25 and 50 per cent, instead of between 30 per cent and 70 per cent.

The £9.5m rent shortfall created by the change will be covered by the Green family.

However, despite the amendments, BBC News reported that Intu, Arcadia’s biggest landlord, was planning on voting against the proposal.

The rescue package consists of a total security value for the scheme of £210m and a £100m contribution from Green’s wife, Lady Green.

Commenting on the proposal, a spokesperson for TPR said: “We have closely reviewed the CVA proposals in relation to the pension schemes at all stages to ensure members are adequately protected.

“We remain satisfied that the additional £25m in security obtained for the schemes - which brings the total security value to £210m, alongside the £100m cash from Lady Green - is the best outcome for members in challenging circumstances.

“We recognise that the best support for most pension schemes is a trading employer and we feel the CVA proposals provide the right balance between security for the pension schemes and the chance of sustainability for the company.”

In a statement, Arcadia said: “The Arcadia board would like to thank TPR, the PPF and the trustees for their help and support in this important vote.”

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