Q&As

Can a former employee enforce payment of sums due under a settlement agreement against a company that is subject to a company voluntary arrangement?

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Produced in partnership with Carly Schiff of Gateley Plc
Published on LexisPSL on 08/11/2017

The following Restructuring & Insolvency Q&A produced in partnership with Carly Schiff of Gateley Plc provides comprehensive and up to date legal information covering:

  • Can a former employee enforce payment of sums due under a settlement agreement against a company that is subject to a company voluntary arrangement?

Can a former employee enforce payment of sums due under a settlement agreement against a company that is subject to a company voluntary arrangement?

In this Q&A, the timing of the settlement agreement and how this relates to the company voluntary arrangement (CVA) will need to be taken into consideration. If the settlement agreement was entered into prior to the company entering into a CVA, this will be a liquidated debt and will simply be an unsecured debt. The CVA will bind all unsecured creditors of a company (provided that the necessary majority of creditors

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