The following Restructuring & Insolvency Q&A Produced in partnership with Carly Schiff of Boyes Turner provides comprehensive and up to date legal information covering:
We have limited this Q&A to cover litigation against a company in Creditors' voluntary liquidation (CVL).
Where a company is in CVL there is no automatic stay of proceedings and accordingly, you can issue proceedings against the insured company (without seeking consent or a lift of stay) in order to obtain judgement and seek enforcement against the insurer. However, the court has discretion to order a stay of proceedings should the proposed litigation have a negative impact on the general body of creditors. In such circumstances, the burden is on the liquidator to persuade the court that a stay should be granted (see Re Keynsham Co (1863) 33 Beav 123, 9 Jur NS
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