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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Topic	CVA No Moratorium	CVA with a Moratorium

1. Fact of existence of proposal must be advertised	No	Yes

2. Any size of company can apply	Yes	No

3. Nominee must report as to sufficiency of cash in the moratorium period	No (but best practice would be to report)	Yes

4. In the moratorium period
4.1 A winding up petition can be presented	Yes	No

4.2 A winding up order can be made	Yes	No

4.3 Landlord can take possession	Yes	No

4.4 Landlord can take a distraint	Yes	No

4.8 H.P Company can re-possess goods	Yes	No

4.9 Bank can appoint a receiver	Yes	No

4.10 Suppliers of public utilities may require payment of old debts as a condition of continuing to supply	Yes	No

4.11 The company cannot take credit of more than £250 (without advising the supplier	No	Yes

4.12 CVA must be advertised	No	Yes

4.13 Fact of moratorium must be displayed on letterheads etc	N/A	Yes

5. Creditors not notified of the CVA creditors will still be bound (post 1-1-2003)	Yes	Yes