Timing of Caffè Nero Restructuring Vote Avoided Debt Rules (1)

One of the U.K.'s largest coffee chains last November steered clear of getting hit with new debt payment rules—by one minute.

Nero Group Ltd.—owner of high street coffee chain Caffè Nero—entered a company voluntary agreement at 11:59 p.m. on November 30, 2020, before the rules took effect December 1, 2020.

Not delaying a vote by creditors to enter the CVA had some tax implications—it meant around 1 million pounds ($1.3 million) in debt to the government wasn’t given priority over other debts that the company owed when it entered the agreement.

The decision not to delay entering ...