KPMG has confirmed that the creditors of regional publisher Archant have voted to approve its CVA proposal.
The proposal was initially put forward by the business on 1 September 2020.
The CVA’s approval is a “core component” of a wider operational and financial restructuring programme that will see Rcapital acquire a majority stake in Archant’s main trading entity, Archant Community Media Limited (ACML), and inject fresh capital into the local newspaper brands.
The vote saw 94% of voting creditors choose to approve the CVA, surpassing the 75% total required in order to pass the resolution.
Law firm Mills and Reeve advised the Archant Group on the restructuring encompassing the CVA and the transaction.
Simon Bax, executive chairman of Archant, said: “We are pleased that our proposal for a CVA has been approved by our creditors and I would like to thank our employees, creditors and other key stakeholders for their support.
“We now look forward to a positive future as we embark on the next chapter for our business with Rcapital.”
Chris Pole, joint supervisor of the CVA and partner at KPMG, added: “The approval of the CVA is an important step which ensures that Archant has the foundations in place to progress its financial restructuring and recommence its transformation, turnaround and modernisation plan.”