Prudential Assurance Co Ltd and Others v PRG Powerhouse Limited and Others [2007].

The High Court has today delivered its judgment in the eagerly awaited Powerhouse case. The judge has decided that the company voluntary arrangement (CVA) put forward by Powerhouse was unfairly prejudicial to the landlords in the way it proposed removing the landlords' rights against Powerhouse's parent company, which had guaranteed Powerhouse's lease obligations.

The decision will be a relief to landlords and will set the tone for the matters that a CVA can legitimately address.

PLC Property will produce a detailed Legal update on the reasons for the decision as soon as the transcript has been issued by the court. For earlier commentary on the case and the background to it see, Legal update, Impact of company voluntary arrangements on guarantees.

NOTE ADDED: For our detailed analysis of this decision, see Legal update, Powerhouse decision on CVAs and lease guarantees.