Playing with fire: the last-minute deal saved the toy R Us

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The U.S. R Us project is preserved for the entire country – or, another three-quarters of heavily indebted U.S. companies living in Britain live another day. That’s good news for the UK’s 2,000 employees to keep jobs, but for 800 employees closing 26 stores next year, the news will be meaningless.

Allowing Toys R Us escape pension administration in the United Kingdom is a deception. It’s untidy and imperfect – but probably the best that can be negotiated on tight schedules.

At least Pension Protection Fund (PPF), an industry lifeboat, did not attempt to over sell the deal. The company’s proposal “took a long way to go” to solve the problem, it said, carefully chose it. This means that not all the concerns have been answered.

you bet. PPF hopes that £ 9m will be pre-entered into Toys R Us’s fixed income fund in the first few months of 2018, meaning that it will receive £ 2.2m in advance payments and £ 1.6m in the first few months of 2018. Pay two million pounds in 2019 and 2020. You can call this 9.8 million pounds, but the extended schedule is a major concession because the long-term survival of Toys R Us in the UK can hardly be seen as definitive.
Some companies thrived after so-called company voluntary arrangements (CVA); others recouped their knees in a matter of months. In the case of Toys R Us, the store looks 20 years behind the times, while Amazon is still hovering.

However, PPF is certainly the right deal. The minimum requirement here is to ensure that, in most cases, the status of the Pension R Us pension fund will not deteriorate. This concern may have been achieved. Even if the company’s self-service transaction plan fails after six months, the pension fund will have more money. And if the toy R Us revives, the PPF has gained the advantage – a company that promises to remove the risk of the program and make up for a £ 30 million deficit within a 10-year time-cut schedule. Both promises are worth having.

Pragmatic compromise is not unexpected. The PPF is present when the crisis is over, so the ability to fight tough battles is limited. To achieve better results in the future, pensioners need more power to intervene earlier. Toys R Us On Thursday’s mini-show was an uncensored story behind a £ 584 million intercompany loan that was injected between British businesses and U.S. parent companies. Regulators must urgently tackle the bottom of this story.

Developers should calm down
Home builders never liked Sajid Javid’s “fight against unfair leases,” but they made the suggestion themselves. As the community secretary said, the system is “feudal,” but it has been given a radical modernism in the financing of the 21st century. Long-term leasing All these heavy rent has become an opportunity to turn cash flow into a whiplash for third parties, and the interests of the leasing holder are often overlooked.

Javid’s measures are very powerful. Developers will be barred from selling new homes on a rental basis unless necessary, such as sharing of ownership. New long lease rent will be set to zero.
The second policy is to cut the stock of retired housing experts McCarthy & Stone 9%. Chief executive Clive Fenton is frantically warning that “it will lead to a disruption in housing supply.”

One thing you can see why he is not happy. Retired “village” has long-term maintenance agreement, so rent can be considered similar to the service fee. But Fenton should calm down. His chances of getting exceptions from the new rules are certainly minimal, as Javid could tell McCarthy to properly characterize his charges and make them transparent.

Such a conversion may make the company pay some price, but this is not the government’s attention. Either way, in the current housing environment, semi-precarious housing requirements are a bad way to guarantee a thumbs-up.

Skanska embarrassed 265 million pounds
Another financial bubble? A year ago, Sweden’s Skanska Group sold a 40% stake in Connect Plus for 265 million pounds, which owns the M25. On Thursday, Belfour Beatty sold 12.5% ??of its equity to several infrastructure funds for £ 103m, which means that 40% of the funds currently hold £ 330m.

As a result, the highway maintenance contract, Connect Plus, is indeed – worth up 25% in 14 months. This is an infrastructure bubble, or Skanska made a scary deal.

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