Creditors' decision-making in an IVA—the position under the Insolvency (England and Wales) Rules 2016
Produced in partnership with Marcus Haywood of South Square Chambers

The following Restructuring & Insolvency practice note produced in partnership with Marcus Haywood of South Square Chambers provides comprehensive and up to date legal information covering:

  • Creditors' decision-making in an IVA—the position under the Insolvency (England and Wales) Rules 2016
  • Creditors’ decision procedure
  • General
  • Creditors’ consideration of the proposal
  • Chairman/Convener
  • Creditors’ decision procedure—entitlement to vote
  • Who is a creditor?
  • Who is a creditor—further elements
  • Contingent creditors
  • The role of the convener/chairman
  • More...

Creditors' decision-making in an IVA—the position under the Insolvency (England and Wales) Rules 2016

Creditors’ decision procedure

General

It is the creditors who decided whether, and if so to what extent, the individual or corporate debtor’s proposal should be accepted. Physical meetings are no longer the default decision-making procedure and the nominee may choose a qualifying decision procedure to obtain a creditor’s decision on the proposal. These are set out in Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024, SI 2016/1024, Pt 15. The relevant decision procedures or meetings will be under the control of the convener or chair who is invariably the nominee, unless the latter is unable to attend when a replacement will attend on their behalf.

Creditors’ consideration of the proposal

The starting point for any IVA is the debtor’s proposals. IR 2016, SI 2016/1024, r 8.3 sets out the prescribed content of an IVA proposal.

If the debtor does not seek an interim order, the nominee must confirm to the court and creditors their view on the viability of the debtor’s IVA proposal within 14 days of the debtor finalising the proposal document.

Where the debtor seeks an interim order, the nominee’s report on the viability of IVA must accompany the debtor’s application for an interim order (section 256(5) of the Insolvency Act 1986 (IA 1986)).

Once the court has received the nominee’s report, it must

Related documents:

Popular documents