HMRC will only be paid £4m of Prezzo tax bill

The High Court has ruled that Prezzo Investco, owner of the Prezzo restaurant chain, can exercise a cram down which means that creditors, including HMRC, will not be paid in full

The decision means that the restaurant chain can restructure but will not be liable for all its debts. According to court documents, Prezzo owes HMRC a total of £11.8m.

HMRC opposed the plan, describing it as unfair, but the judge ruled that HMRC would be significantly better off even if it was only paid a third of the tax due, compared to the situation if the group had gone into administration.

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