- Creditors are frozen by the Section 1A Company Voluntary Arrangement
- CVA - Responsibility of directors in a Section 1A CVA
- Section 1A Insolvency Act 1986 - Disclosure Requirements
- Creditors not included in the CVA proposal
- What does a Nominee of a Company Voluntary Arrangement have to do?
- CVA Creditors Meeting - Section 1A Insolvency Act 1986
- Voting Rights in a CVA under Section 1A Insolvency Act 1986
- Supervisors Duties in a Section 1A CVA
- A draft Company Voluntary Arrangement Proposal for you to look at
- Costs of preparing and operating under a Company Voluntary Arrangement
- Concluding the Company Voluntary Arrangement - The end is nigh!
- Banks and other secured creditors in a Company Voluntary Arrangement
- Landlords no longer protected from a Company Voluntary Arrangement
- Petitioning Creditors
- Company Voluntary Arrangements and Preferential Creditors - Definition
- Benefits to unsecured Creditors in the newer type of CVA
Company Voluntary Arrangement with a moratorium - Disclosure Issues
With a Company Voluntary Arrangement that has a freeze, or moratorium, (A Section 1A Insolvency Act 1986 CVA) on creditors enforcement actions in the period leading up to the CVA creditors meeting there are special rules about publishing and other disclosure of the existence of the proposal
The company has to "disclose" that the moratorium is in existence. This disclosure is comprehensive and includes:
- the proposal and the nominee's report must be filed with the court (before the moratorium can begin).
- advertisement in the London Gazette.
- one advertisement in a local newspaper.
- notification to the Registrar of Companies.
- notification to anybody who has issued a winding up petition or to anybody who has instructed bailiffs.
- advertising in the London Gazette, again, when the moratorium comes to an end.
- advertising in a local newspaper, again, when the moratorium comes to an end.
- notifying the Registrar of Companies when the moratorium comes to an end.
- in the moratorium period every invoice, letterhead, order etc must record that a moratorium is in existence.
- credit for more than £250 in the moratorium period cannot be taken without disclosure taking place.
- the proposal and nominees report is circulated to all company creditors.
All these disclosure requirements have the effect of ensuring that the existence of the moratorium becomes known to the business community in which the company operates so that there is little risk of the company taking credit when the company has the benefit of being able to prevent any creditor rtaking action against it.
For insolvency advice on whether you wish to avoid publishing the existence of your proposed Company Voluntary Arrangement contact us for a FREE INITIAL MEETING. We will exlain the insolvency options concerning the different types of Company Voluntary Arrangement.