- 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
Benefits to unsecured creditors arising from the newer type of Company Voluntary Arrangement (CVA)
Unsecured creditors as a whole indirectly benefit under the new Company Voluntary Arrangement (CVA) process as in the period leading up to the creditors meeting
- Debenture holders are prevented from appointing an Administrative Receiver
- Landlords cannot distrain or take peaceable re-entry.
- 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 from the government's aim of their being a "rescue culture" as being more likely to happen if all creditors can vote on the future of a company under a Company Voluntary Arrangement rather than that future be derailed by one of the classes of creditors listed above.
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.
For advice on how your company can be rescued from enforcement actions of landlords, banks, finance companies and protected from statutory demands, winding up petitions and winding up orders issued by unsecured creditors consider proposing a Company Voluntary Arrangement.