Purnells

	Two types of CVA
	what are the two types? why two types? who can apply for a new type of CVA? are their different rules? when would an old type CVA be used? when would a new type of CVA be used?
	Old type CVA - No Moratorium the limbo period nominees duties disclosure issues directors duties the proposal impact of proposal on various parties
	New type CVA - With Moratorium enormous power enormous responsibility disclosure issues impact of proposal nominees duties creditors meeting voting rights supervisors duties a typical proposal costs concluding the CVA banks and debenture holders landlords petitioning creditors preferential creditors unsecured creditors
	Table of differences table to show the differences between the two types of CVA?
	Administration Order v CVA when would administration be sought rather than take up a new type CVA?
	Case Studies case study 1 case study 2 case study 3

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Creditors can attend at the meeting in person or by giving their "proxy" to another person to vote in the way that they wish at the creditors meeting.

The creditors meeting has to take place within 28 days of the proposal being first filed into court.

It is possible for the creditors to extend the period of the moratorium by up to two months. To obtain such an extension a resolution must be passed which is approved by a majority of three quarters in value of those creditors present personally or by proxy and voting.

The creditors might approve the proposal with or without modification.

There are two votes at the creditors meeting at which the creditors decide to approve or reject the proposed arrangment.

For the first vote connected creditors (such as relatives, business partners etc) can vote. For a resolution to be approved 75% in value, of those must be in favour.
Assuming that first hurdle is jumped there is a second vote. On the second vote connected creditors are not allowed to participate. For a resolution to be approved 50% in value of those then voting must be in favour.

The parties who can participate in any vote to adjourn the creditors meeting to a later date are, however, quite different. For such a resolution secured creditors can vote for the full amount they are owed (in other words the value of their security is ignored)