Under the terms of a company voluntary arrangement, a company has served a break notice on a landlord. The company enters into administration prior to the break date, what is the impact?

Company voluntary arrangements

A company voluntary arrangement (CVA) is a statutory contract between the Company and its creditors and is used by a company in financial difficulty to restructure its debts. Accordingly, the specific details of CVA terms will be found in the CVA proposal. As such, it is necessary to carefully consider the terms of the individual CVA to understand any impact on any break Notices and the impact of administration, in particular whether this terminates the CVA and any consequences that flow from termination.

For further information on CVAs generally, see Practice Notes: Property law aspects of Company Voluntary Arrangements (CVAs) and CVAs—landlord issues and remedies.

Impact of administration

When a company enters administration, an administrator would usually be bound by the contractual obligations entered into by the company prior to the date of the administration. This would include the break notice served by the company under