Mon, 14 Jun 2021 | ADMINISTRATION
NCP, the UK's largest car park provider, has revealed that it is at risk of falling into administration ahead of a vote on the company's newly announced restructuring plan.
The restructuring plan would lead to a significant shakeup of the company's business model, resulting in many landlords facing large rent cuts. As such, some of the 500 landlords working with the company have reportedly entered into discussions with other operators in a bid to avoid a drop in rental income.
NCP has reportedly been facing financial struggles as a result of stay-at-home orders during the coronavirus pandemic. It has subsequently seen its revenues drop by 80 per cent and has turned to a possible restructuring in an attempt to save the company.
Commenting on the restructuring plan, NCP stated that a rent cut would be a "last resort" and it would instead be pursuing plans to pull out of contracts for unprofitable parking facilities. However, the firm stated that it would be forced to call in administrators if it is unable to secure support from car park landlords.
Park 24, NCP's Japanese owner, has stated that it backs the plans but will cut funding if it doesn't succeed. However, this will tip the carpark firm into insolvency.
However, an NCP spokesperson has said that the company's focus remains on securing the "best possible outcome" for the business, as well as for its creditors and stakeholders.
They added: "We would urge all landlords to vote in favour of the plan, which we firmly believe will result in a higher return for each class of creditor, than in the reasonable alternative, insolvency."
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