Cva-Proposal.Pdf

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If 02you Marare 2018 in any doubt as to the action you should take, you are recommended to seek your own independent financial advice from a stockbroker, bank manager, solicitor, accountant or other financial adviser authorised under the Financial Services and Markets Act 2000. This document does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to acquire any Shares or other transferable securities in Prezzo Limited (“Prezzo”). Any reproductionCR-2018-001777 of this document, in whole or in part, and any disclosure of its contents, except to the extent such information is otherwise publicly available, or use of any information it contains for any purpose other than considering the resolutions is prohibited. ___________________________________________________________________________ PREZZO LIMITED and each of its CVA CREDITORS (as defined herein) COMPANY VOLUNTARY ARRANGEMENT (under Part I of the Insolvency Act 1986) ___________________________________________________________________________ This document has been prepared solely to inform creditors and the shareholder of Prezzo of proposals for a company voluntary arrangement. Nothing in this Proposal should be relied upon for any other purpose. Your attention is drawn to paragraphs 1 (The Company, page vi), 2 (The financial position and trading performance of the Company, page vi) and 3 (Objectives of the CVA proposal, page vii) of the section titled the “Summary of the Proposal” on page vi and 7 (Recommendation to creditors and shareholders) of Part I (Introduction) of this document. Such sections describe the background and the desirability of the Proposal for creditors and the shareholder and recommending why creditors and the shareholder should vote in favour of the Proposal. The action required to be taken by you is set out in Part II (Action to be taken by CVA Creditors and Shareholders). Formal notices of the Creditors’ Meeting and Shareholder's Meeting to approve the company voluntary arrangement and relevant Proxy Form(s) for voting at these meetings, which are to be held at Grand Connaught Rooms, 61-65 Great Queen Street, London WC2B 5DA at 11:00 a.m. on 23 March 2018 (in respect of the Creditors’ Meeting) and at Grand Connaught Rooms, 61-65 Great Queen Street, London WC2B 5DA at 1:00 p.m. on 23 March 2018 (in respect of the Shareholder’s Meeting), are included within this Proposal. For creditors, please complete and return the relevant Notice of Claim(s) sent to you with this Proposal in accordance with the instructions set out in it. Save as set out in this Proposal, the CVA will not seek to compromise the rights or claims of any other creditors, including, without limitation, employees and customers. A creditor who is a Compromised Landlord may not receive any benefit from the Prezzo Compromised Lease Payments pursuant to Clause 18 of this CVA unless it files a Notice of Claim before the Claims Date. The Claims Date is 21 March 2018. Unsecured Creditors (including Landlords) will receive a greater return on the amount owed to them in the CVA than they would do if Prezzo were to enter administration (see further page xi). If the CVA is not approved and implemented, Prezzo is likely to enter into administration. The claim of a CVA Creditor who does not respond will not be taken into account for the purposes of calculating the requisite majorities for the Proposal to be approved (as set out in paragraphs 6.2 (Further Points) and 3.1 (What is a CVA?)). In addition, the Proposal, if approved, is binding on all CVA Creditors, including those CVA Creditors who did not vote or voted against the Proposal. Your vote on the Proposal is therefore very important. Please take the time to consider the documents that have been sent to you and take appropriate action, including the return of the relevant Notice of Claim and Proxy Form. Issue Date: 2 March 2018 CONTENTS IMPORTANT NOTICE FROM THE DIRECTORS ....................................................................... iv NOTICE FROM THE NOMINEES ................................................................................................... v SUMMARY OF THE PROPOSAL.................................................................................................... vi DOCUMENTS RECEIVED.............................................................................................................. xiii NEXT STEPS ..................................................................................................................................... xiv SECTION 1 - PROPOSAL .................................................................................................................. 1 Key Dates and Expected Timetable of Key Events ............................................................................ 1 Part I INTRODUCTION .................................................................................................................... 2 1 Directors’ Proposal .................................................................................................................... 2 2 Definitions and Interpretation .................................................................................................... 2 3 What is a CVA? ......................................................................................................................... 2 4 Why is a CVA required? ............................................................................................................ 3 5 Proposed Duration of the CVA .................................................................................................. 4 6 Lease Categorisation .................................................................................................................. 4 7 Recommendation to creditors and shareholders ........................................................................ 5 Part II ACTION TO BE TAKEN BY CVA CREDITORS AND SHAREHOLDER ..................... 6 1 Arrangements for voting at creditor’s meeting .......................................................................... 6 2 Votes in relation to Landlords .................................................................................................... 7 3 Arrangements for voting at Shareholder’s Meeting ................................................................... 8 4 Creditors and shareholders with queries .................................................................................... 8 Part III CORPORATE, STATUTORY AND FINANCIAL INFORMATION .............................. 9 1 Corporate Information ............................................................................................................... 9 2 Statutory and Financial Information .......................................................................................... 9 Part IV TAX INFORMATION AND TAX DISCLAIMER ........................................................... 10 1 Tax Information and Tax Disclosure ....................................................................................... 10 SECTION 2 TERMS OF THE PROPOSAL .................................................................................... 11 Part V TERMS OF THE COMPANY VOLUNTARY ARRANGEMENT .................................. 11 1 Definitions and Interpretation .................................................................................................. 11 2 Effectiveness of the CVA ........................................................................................................ 11 3 Operation of Prezzo ................................................................................................................. 11 4 Moratorium .............................................................................................................................. 11 5 The Effect Of The CVA on Ordinary Unsecured Creditors .................................................... 12 6 The Effect of the CVA on Employees ..................................................................................... 13 7 The Effect of the CVA on Secured Creditors and Preferential Creditors ................................ 13 8 The Effect of the CVA On Category 1 Landlords ................................................................... 13 9 The Effect of the CVA On Category 2 Landlords ................................................................... 15 10 The Effect of the CVA on Category 3 Landlords .................................................................... 19 11 The Effect of the CVA on Category 4 Landlords .................................................................... 23 12 The Effect of the CVA on Category 5 Landlords .................................................................... 28 13 The Effect of the CVA on Category 6 Landlords .................................................................... 28 14 The Effect of the CVA on the Category 7 Landlord ................................................................ 29 15 Compromised Leases: Interim Rent Review ........................................................................... 29 16 Rent Concession Agreement .................................................................................................... 31 17 The Compromised Contingent Property Creditors’ CVA Claims ........................................... 32 18 The Compromised Lease Payment .........................................................................................

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