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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Prior to the creditors meeting at which the proposal is to be considered the fact that an old type CVA proposal is in existence has no impact on creditors rights.

creditors can still issue court claims
enforcement action can be taken (bailiffs, sheriffs, garnishee orders, charging orders)
receivers can be appointed
finance companies can re-possess their goods
a winding up petition can be issued
a winding up order can be made.

If there is a danger of any of the above events occurring in the limbo period directors might be better advised to propose a new type CVA.