Wahaca to write off £25m of debt under CVA proposal
Sky News reports that a Company Voluntary Arrangement (CVA) being proposed by the Mexican-themed restaurant chain will lead to its shareholders and lenders injecting £5m of new money into the business to put it on a more sustainable footing.
Lenders led by the taxpayer-backed NatWest Group will also see roughly 60% of their exposure, or £13m, written off, while shareholders are writing off the entirety of the £12m they are owed by the company.
As was reported last month, Wahaca will also close 10 of its 28 restaurants.
The closures will impact sites across England including in London, Bristol, Manchester and Liverpool.
At the time founders Mark Selby and Thomasina Miers said that 'wherever possible' they were going to 'try and save jobs'.
"These have been the hardest decisions of our lives and we have looked at this from every angle with the sole objective of looking after as many of our teams and restaurants as we can without having to close the business for good like so many others have had to do," they said.
"[We] apologise unreservedly to those affected and once again thank you for everything you have done for us."
The latest details were sent to Wahaca's creditors earlier this week ahead of a vote on the CVA, which is being supervised by PricewaterhouseCoopers.
Sky said the proposals underlined the fact that creditors other than landlords were also being asked to share the financial pain of the chain's restructuring, with Britain's hospitality industry set to suffer a devastating new blow from the 10pm closure of pubs and restaurants under new Government restrictions.
