Supported housing provider rescued after CVA agreed by creditors

Supported housing provider My Space Housing Solutions has successfully entered into a company voluntary arrangement (CVA) with its creditors, saving it from liquidation. It is only the second ever CVA in the social housing sector. 

The majority of the registered provider’s (RPs) creditors voted in favour of the CVA at a meeting on Friday, meaning that the business will continue to operate going forward and provide the services its vulnerable residents need.

My Space leases properties to provide supported housing across the North West, the North East, the Midlands and Wales, and was represented by our Litigation & Dispute Resolution team in securing the CVA.

The only other CVA in the social housing sector was in 2018 when Devonshires acted for First Priority Housing Association (FPHA). 

A CVA is a legally binding agreement between a business and its creditors that sets out how the company’s debts should be compromised, together with other amendments to the contractual arrangements between the parties.

If the CVA had not been granted, then My Space would have been forced into voluntary liquidation resulting in an immediate hand back of properties to landlords, putting hundreds of residents at risk of homelessness.

Jim Varley, Partner who acted for My Space, said: “The approval of the CVA means the business is saved and the residents, many of whom are vulnerable, are not impacted in any way.

“The alternative would have been a disaster for residents as landlords would not be able to swiftly find an alternative social housing provider to manage the properties. 

“We are delighted to have been able to act for My Space in this matter and to have helped protect the vulnerable residents from a difficult situation.”

My Space lodged documents with the court about its proposed CVA last month. This followed an enforcement notice by the Regulator of Social Housing in January 2023 telling My Space that it needed to commission insolvency advice.