- 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 Arrangements & Petitioning Creditors - Benefit of stopping the winding up action
As soon as a new type (Section 1A of The Insolvency Act 1986) Company Voluntary Arrangement proposal is filed with the court a winding up petition already issued cannot be pursued - unless the CVA proposal is later rejected at the creditors meeting called to consider the proposal.
It can be seen, therefore, that the issue of a winding up petition may be the final push to encourage directors to seek a voluntary arrangement with their company creditors.
Conclusion
All is not lost as far as a possible company rescue is concerned when a winding up petition is issued against a company. A Company Voluntary Arrangement proposal under Section 1A of The Insolvency Act 1986 will stop the winding up proceedings. For further insolvency advice and to learn of the benefits of a Company Voluntary Arrangement please contact us.