Oddbins has applied to go into administration in a tactical move designed to head off the threat of a winding-up petition from its creditors.
Those owned money by the off-licence chain are to vote on Thursday whether to accept a CVA that would pay them back 21p in the pound. Oddbins needs 75% of the votes by value for the restructuring deal to go through and avoid entering administration.
A spokeswoman said filing for administration was a “precautionary measure” to protect the company from claims by creditors and protect the CVA. Filing for administration takes 10 days and imposes a moratorium over any claims made during that period.
Oddbins applied for administration after British Gas lodged a winding-up order against it.
The result of the CVA vote will be made public on 4 April.
In the world of off-licences, is Bargain Booze a bargain? (analysis; 26 March 2011)
Oddbins rescue plan offers creditors just 21p in the pound (17 March 2011)