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 soon as a new type CVA is filed with the court a winding up petition already issued cannot be pursued - unless the CVA proposal is rejected at the creditors meeting.

It can be seen, therefore, that the issue of a winding up petition post 1st January 2003 may be the final push to encourage directors to seek an arrangement with their company creditors.

Conclusion

In future all will not be lost as far as a possible rescue is concerned when a winding up petition is issued against a company.