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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Under this case study a sports club that had recently built its own clubhouse, bar and leisure facilities was saved from going out of existence by a 1986 Insolvency Act Company Voluntary Arrangement.

Under this CVA the Directors clubbed together to raise �20,000. That sum was offered to creditors owed �200,000.

The creditors accepted that 10 per cent dividend. The company continues as a Welsh League football unit to this day.