Owners intend to plough in £120million over two years if the plan is approved
Car parks giant NCP has warned it is likely to go bust if it does not receive the support of landlords for a crucial financial restructuring.
The company, which operates more than 500 sites and has 1,000 staff, yesterday formally launched a restructuring plan as it attempts to slash its rent bill. The proposals will be put before a court hearing on May 28.
NCP’s owners – listed Japanese operator Park24 and the Development Bank of Japan – intend to plough in £120million over two years if the plan is approved.
But Park24 has warned NCP that if the plan is not successfully implemented it will not continue funding the business.
The British Property Federation opposes NCP’s plan, calling it a ‘signal’ to businesses they can ‘walk away from debt owed to property owners’ if approved.
NCP said it has begun contingency planning for alternative options, ‘which will likely be an insolvent outcome for the business’.
The firm has put its car parks into six groups based on the viability of each lease. The plan must be approved by 75 per cent of creditors in each group but NCP can still seek a judge’s permission to disregard their vote.
NCP said it had been ‘deeply impacted’ by the pandemic cutting the number of commuters and shoppers in town centres.
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