Information to the nominee of a company voluntary arrangement (CVA)
Produced in partnership with Lexa Hilliard QC of Wilberforce Chambers

The following Restructuring & Insolvency practice note produced in partnership with Lexa Hilliard QC of Wilberforce Chambers provides comprehensive and up to date legal information covering:

  • Information to the nominee of a company voluntary arrangement (CVA)
  • Where Nominee is not the administrator or liquidator
  • Nominee who is the administrator or liquidator

Information to the nominee of a company voluntary arrangement (CVA)

This Practice Note covers the information which should be provided to the nominee in order to allow them to consider the merits of the CVA proposal and to prepare their report to the court (see below: Information to the nominee of a company voluntary arrangement (CVA)—Nominee who is the administrator or liquidator). Statement of Insolvency Practice (SIP) 3.2 is relevant to the whole of this Practice Note.

Where Nominee is not the administrator or liquidator

The Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024 apply to CVAs.

The nominee is required to prepare a report on whether:

  1. the company’s financial position is materially different from that contained in the CVA proposal, explaining the extent to which the information has been verified

  2. the CVA is manifestly unfair

  3. the proposer’s consent is sought on any modifications to the proposal put forward by creditors, and the proposer understands the impact of the modifications on the implementation of the CVA and its viability

  4. (where a modification is adopted) consent has been obtained from the proposer of the CVA and, if appropriate, the creditors. In the absence of consent, the CVA cannot proceed. The proposer’s consent must be recorded

  5. the CVA has a reasonable prospect of being approved and implemented

  6. the directors’ proposal should be considered by a meeting of the

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