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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Imagine that you, as a director of a company, were served this morning with a winding up petition.

You read that document and find that it was issued by the court three weeks ago - and the court is to hear whether or not to grant a winding up order at a hearing being held two weeks from today.

You will feel the need for a breathing space. This is where the new type CVA comes in. The moratorium granted as a result of filing a CVA proposal will result in the winding up hearing not taking place on the date originally intended.

Instead the Creditors Meeting will come first of all. At that meeting the creditors as a group will decide whether or not they prefer the directors proposal instead of a winding up order.

At indicated earlier on this site you may well also wish to apply for a new type CVA if the following were imminent:

your bank threatened receivership
a sheriff or bailiff was pursuing a distraint
a finance company sought repossession of its goods
a landlord threatened distraint