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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Yes - there are different rules. The grant of a moratorium provides substantial privileges to the Directors of a company facing severe financial difficulties.

As a result the new type CVA, which grants a moratorium period is subject to more procedural requirements than the old type CVA.

Examples of some of the different requirements for each type of CVA are set out later on this site under headings (for each type of CVA)

Nominees duties
Directors duties
Disclosure issues

Conclusion

If your company needs the greater protection of a CVA providing a moratorium you as a Director will have greater personal responsibilities and there are material disclosure requirements to be met.