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

___

Because there is no "protection period" or "moratorium" in an old type CVA the directors duties and responsibilities are much less than that they face if they were proposing a new type CVA.

In an old CVA the directors:

have a duty to prepare the proposal, (although often this is done on their behalf by the nominee).
have the continuing general and specific duties imposed by the Companies Acts to act in a proper manner. They do not have additional responsibilities.

By contrast in a new type CVA the directors have additional responsibilities placed on them arising out of the provisions of the Insolvency Act 2000.

This is reasonable for the reason that if a "moratorium" is required under a new type CVA the directors must accept:

that they have greater responsibilities arising from the fact that the company creditors have been deprived of their normal rights of enforcement.
that they must publicly "disclose" more.