Unsecured creditors lose £75m after credit insurer stops CVA
Curry house favourite Cobra Beer’s attempt to save creditors through a company voluntary arrangement (CVA) was thwarted by an un-named credit insurer, the Times reports.
Instead, Cobra went into administration and was immediately bought by brewer Molson Coors, in a joint venture with previous owner Lord Bilimoria, meaning unsecured creditors, who are owed up to £75m, will get nothing.
Bilimoria said: “We had no choice but to go down this route. I feel terrible about that. I feel gutted that the unsecured creditors aren’t going to be able to be paid.”
The CVA that would have given all creditors some money back was stopped when creditor, Wells & Young’s, which brews Cobra under licence, vetoed the proposal after it was advised by its credit insurer not to accept the deal.
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