Nursery Today magazine

Comprehensive measures announced by Mothercare

CVA Proposals: Results of Creditors' Meetings

Mothercare plc has announced comprehensive measures to refinance its business ("Refinancing") and to restructure its UK store portfolio ("UK Restructuring") through company voluntary arrangements of certain of its subsidiaries ("CVA Proposals").

The creditors' meetings for Mothercare UK Limited, Childrens World Limited and Early Learning Centre Limited were held today to consider the CVA Proposals and the Company is pleased to announce that the CVA Proposals were approved by the requisite majorities of more than 75% in value of the unsecured creditors of the companies present at each of the meetings in person or by proxy. In accordance with the statutory provisions, there is a limited period, expiring on 29 June 2018, in which a creditor may apply to court to challenge the CVA Proposals.

The CVA Proposals are not expected to affect the ordinary course of operations of Mothercare plc, which continues to trade as a going concern under the control of its directors. Mothercare plc is not, and will not be, in administration as a result of the approval by creditors of the CVA Proposals.

As part of the Refinancing, the New Equity Issue comprising a placing and open offer of new ordinary shares to raise approximately £28m is expected to complete in July 2018 with the current intention that it will be priced at 19 pence per new ordinary share. The New Equity Issue continues to be underpinned by the standby underwriting commitment from Numis Securities Limited and final pricing of the New Equity Issue remains subject to the prevailing market price of the ordinary shares at the time of launch and agreement of final terms by the Company and Numis Securities Limited in accordance with the terms of the standby underwriting agreement. The Revised Debt Facilities of £67.5m provided by Mothercare plc's existing lenders remain conditional upon, amongst other things, the completion of the New Equity Issue. Mothercare plc is in the process of preparing a prospectus and circular to shareholders setting out, amongst other things, the detailed terms and the shareholder resolutions necessary for the proposed New Equity Issue. Further details of the New Equity Issue will be announced in due course.

Commenting on the approval of the CVA Proposals by creditors, Clive Whiley, Interim Executive Chairman, said:

"We are very grateful for the support of our many stakeholders across our creditor base in supporting today's CVA Proposals. Their forbearance and support today is a crucial step forward to achieve the renewed and stable financial structure for the business that will drive an acceleration of Mothercare's transformation. These measures provide a solid platform from which to reposition the Group and begin to focus on growth, both in the UK and internationally."

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