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Las Iguanas Faces High Court Restructuring Bid
11 May
Summary
- Iguanas Holdings seeks court approval for restructuring to avoid administration.
- Creditors will vote on May 28 on the plan, with a court decision on June 5.
- The plan addresses £37 million in debt and includes new funding of £3 million.
Las Iguanas Holdings Limited has approached the High Court to restructure its finances, aiming to prevent administration for its 47 UK restaurants. Justice Hildyard has permitted the company to convene creditor meetings, with a crucial vote scheduled for May 28. A final court sanction is expected on June 5 if creditors approve the plan.
The proposed restructuring addresses a substantial £37 million debt owed to a single creditor. Additionally, the Big Table Group has pledged £3 million in new funds, crucial for the chain's operations. This plan is seen as an alternative to a simple cash bridge, as Big Table Group is no longer funding operating losses.
Elements of the plan include rent reductions and compromises on landlord debts, giving landlords a direct stake in the outcome. The broader restaurant industry faces significant cost pressures, with labor and food expenses reportedly increasing by 35% since the pandemic, alongside rising insurance, taxes, and utility costs.
Operators are finding it increasingly difficult to pass these increased costs onto consumers. Anne McBride noted that diners are reaching their spending limit. Consequently, Las Iguanas is pursuing this court-led restructuring to reset its debt load and continue trading, rather than facing administration.
