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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Unsecured creditors indirectly benefit under the new CVA process as:

Debenture holders are prevented from appointing an Administrative Receiver
Landlords cannot distrain or take peaceable re-entry.
The Finance Companies cannot re-possess their goods
A winding up petition cannot be issued.
Existing winding up petitions cannot be taken forward to the making of a winding up order.

All of these restrictions result in the government aim of their being a "rescue culture" as being more likely to happen.

In future "creditors as a group" will in many cases determine what is to happen to the future of a company suffering financial distress rather than the life of that company being prematurely brought to an end by the action of any individual creditor.