The following Restructuring & Insolvency guidance note Produced in partnership with Tom Shepherd of 4 New Square and Paul Allen of FRP Advisory LLP provides comprehensive and up to date legal information covering:
An application can be made to challenge the approval of an individual voluntary arrangement (IVA) on one or both of two grounds:
that the creditors’ decision approving the IVA unfairly prejudices the interests of a creditor of the debtor
that there has been some material irregularity at or in relation to the creditors' decision procedure
A creditor is entitled to challenge an IVA if they:
were entitled to vote in the creditors' decision procedure, or
would have been entitled had they had notice of the creditors' decision procedure
A challenge to an IVA may only be pursued in accordance with the statutory scheme.
An application to challenge an IVA may not be made:
after the end of the period of 28 days beginning with:
where an interim order (IO) was made under section 252 of the Insolvency Act 1986 (IA 1986), the date on which the nominee reported to the court under IA 1986, s 259(1)(b) the decision of the creditors, or
where no IO was made, the date on which the creditors decided whether to approve the IVA proposal
in the case of a creditor who was not given notice of the creditors' decision procedure, after the end of
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