- 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
My landlord wants to kick the company out of the premises because of a proposed Company Voluntary Arrangement
For years landlords have had a protected place in insolvent situations. A landlord has, previously, been allowed to distrain or forfeit a property lease (without a court appearance) and irrespective of whether or not a Company Voluntary Arrangement (CVA) had been proposed - landlords have always been problems in insolvent situations.
This former power of landlords had meant that many possible CVA's were non-starters if there were material arrears of rent due to the landlord.
The new rules - You can now avoid landlord problems - Stop him in his tracks!
- In the moratorium period no landlord to whom rent is payable may exercise any right of forfeiture by peaceable re-entry in relation to premises let to the company (except with court permission).
- If the CVA is approved the landlord becomes bound by the agreed CVA proposal.
Landlord tactics:
Because of these new rules landlords can be expected to devise new ways of operating which might include:
- Taking out debentures for sums of rent arising from time to time.
- Insisting on higher security bonds when granting leases in the first instance.
If you are considering proposing a Company Voluntary Arrangement for your company and anticipate that the landlord may be difficult contact Purnells for FREE INITIAL ADVICE.