18 April 2019

Letter to the Editors

Debenhams

from Anthony Silver

11 April 2019

Dear Sir

The scenario postulated in last week’s Lens on the Week may or may not reflect the reality; consider then another possibility.

Is it likely that with the banking covenants probably in place, any offer for Debenhams would have to be approved by the secured creditors, so it would be they, and not the directors,  who had the final say.     It is therefore quite possible that the secured creditors were banking on Mr Ashley injecting  more equity than he was prepared to do (although he upped his offer by £50m in the last couple of weeks),  and when they realised he wouldn’t,  they decided to pull stumps to maximise the value of their asset.

Yours faithfully

Anthony Silver

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