Creditors approve Archant CVA proposal

Portman House, home of the East Anglian Daily Times and Ipswich Star

Portman House, home of the East Anglian Daily Times and Ipswich Star - Credit: Archant

The creditors of regional media firm Archant, which publishes this newspaper, have voted to approve the Company Voluntary Arrangement proposal put forward by the business on September 1, 2020.

The approval of the CVA by its creditors is a core component of a wider operational and financial restructuring programme which will see Rcapital acquire a majority stake in Archant’s main trading entity, Archant Community Media Limited and inject fresh capital into one of the UK’s oldest local newspaper brands.

Simon Bax, Executive Chairman of Archant, said: “We are pleased that our proposal for a CVA has been approved by our creditors and I would like to thank our employees, creditors and other key stakeholders for their support. We now look forward to a positive future as we embark on the next chapter for our business with Rcapital.”

Chris Pole, joint supervisor of the CVA and partner at KPMG, added: “The approval of the CVA is an important step which ensures that Archant has the foundations in place to progress its financial restructuring and recommence its transformation, turnaround and modernisation plan.”

He added, “The vote saw 94% of all voting creditors choosing to approve the CVA, surpassing the 75% total required in order to pass the resolution.”

Law firm Mills & Reeve, with a team led by restructuring and insolvency partner Neil Smyth, advised the Archant Group on the restructuring encompassing the CVA and the transaction.