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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As indicated earlier when a company is in the "limbo period" up to the day of the creditors meeting there is no protection against creditors commencing or continuing enforcement actions against the company assets.

Because there is no such protection there is no requirement on the company to be involved in a number of disclosure steps that otherwise would be necessary.

In other words in an old type CVA there are no requirements to:

advertise in the London Gazette or local newspaper
lodge any paperwork with the Registrar of Companies
record on company letterheads, invoices, orders etc that a CVA has been proposed

From the above it can be seen that the general world would possibly not become aware of an old type CVA because of there being no advertisement requirement.