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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For years landlords have had a protected place in insolvent situations. A landlord has, previously, been allowed to distrain (without a court appearance) and irrespective of whether or not a CVA had been proposed.

This power had meant that many possible CVA's were non-starters if there were material arrears of rent due to the landlord.

The new rules:

In the moratorium period no landlord to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company (except with court permission).
If the CVA is approved the landlord becomes bound by the agreed CVA proposal.

Landlord tactics:

Because of these new rules landlords can be expected to devise new ways of operating which might include:

Taking out debentures for sums of rent arising from time to time.
Insisting on higher security bonds when granting leases in the first instance.