Property investment firm M&G Real Estate has withdrawn its court action against Debenhams’ CVA.
The department store retailer said the pending lawsuit brought against it by M&G Real Estate regarding its CVA had been withdrawn “following positive, constructive discussion” between the two businesses.
This is one of two legal challenges launched against the retailer following its two CVA proposals winning approval from over 80% of landlords and 94% and 97% of creditors respectively.
The court action brought against Debenhams by Sports Direct in conjunction with landlord Combined Property Control (CPC), which lets six stores to the retailer, remains outstanding.
The department store chain said this legal challenge “is completely without merit and should be dismissed”.
Debenhams chairman Terry Duddy said: “I am pleased that M&G has recognised the necessity for the CVAs and that as a result of the discussions we have had, it has withdrawn its challenge.
“I call on Sports Direct and CPC to do the same. If they do not, we will seek to have it thrown out. In the meantime, we continue to make good progress with the company’s restructuring plans.”
Sports Direct founder Mike Ashley was the department store retailer’s largest stakeholder prior to its pre-pack administration.
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