The following Restructuring & Insolvency guidance note Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers provides comprehensive and up to date legal information covering:
There is no definition of ‘failure’ of a company voluntary arrangement (CVA) in the Insolvency Act 1986 (IA 1986). It does not explain when failure will take place, or what its effect will be.
However, the IA 1986 does recognise that an arrangement may ‘come to an end prematurely’ (see IA 1986, ss 5(2A)(b), 6(3)). This is defined as occurring when the CVA ceases to have effect ‘it has not been fully implemented in respect of all persons bound by the arrangement’ (see: IA 1986, s 7B).
The Insolvency (England and Wales) Rules 2016, SI 2016/1024 (IR 2016) apply to CVAs and also make some provision as to what must be done after termination; not more than 28 days after termination of the voluntary arrangement, the supervisor must serve a notice that the CVA has been terminated (see: IR 2016, SI 2016/1024 r 2.44(1). For further reading on the IR 2016, SI 2016/1024 generally, see: The Insolvency (England and Wales) Rules 2016—overview. For further reading on any transitional provisions that may apply, see Practice Note: The Insolvency (England and Wales) Rules 2016—Schedule 2: Transitional provisions [Archived]. For a summary of the changes affecting CVAs, see Practice Note: The Insolvency (England and Wales) Rules 2016—Part 2: Changes to company voluntary arrangements (CVAs) [Archived]).
The notice must be accompanied by a report summarising receipts and payments
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