The Insolvency Act 1986 provides that1:
Other creditors cannot be preferred to any preferential creditor in the arrangement; and
One preferential creditor cannot be treated better than another, unless in each case, the individual preferential creditor consents.
There is no provision in the CVA legislation for class meetings of preferential creditors, so an individual preferential creditor cannot be bound by the decision of the class of preferential creditors as a whole. As a result of the changes in the law by the Enterprise Act 2002, ordinary unsecured creditors are entitled to the ‘prescribed part’ or ‘top
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