Company Voluntary Arrangements (CVAs) - Law - CVA with a moratorium
Schedule A1 - Insolvency Act 1986 - Paragraph 4B - Public Private Partnerships
The law set out at Paragraph 4B of Schedule A1 to The Insolvency Act 1986 prescribes that a "Public Private Partnership" is ineligible to apply for a Company Voluntary Arrangement with a moratorium. Such insolvent partnerships must therefore look at an alternative insolvency process. For free advice on this complex area of insolvency law please contact us.
The actual wording of Paragraph 4B is reproduced below in bold.
Paragraph 4B - Schedule A1 - Insolvency Act 1986 - Public Private Partnerships
A company is also excluded from being eligible for a moratorium if, on the date of filing, it is a project company of a project which—
(i) is a public-private partnership project, and
(ii) includes step-in rights.
The definition of "Public Private Partnership Project" is found at Paragraph 4I of Schedule A1 to The Insolvency Act 1986. Paragraph 4A of Schedule A1 makes such public - private ventures that become insolvent ineligible to apply for a Company Voluntary Arrangement (CVA) with a moratorium. Instead Administration is the insolvency route for such projects.