The following Restructuring & Insolvency guidance note Produced in partnership with Phillip Patterson of Hardwicke Chambers provides comprehensive and up to date legal information covering:
In addition to the better-known company voluntary arrangements (CVAs) and individual voluntary arrangements (IVAs), the insolvency legislation permits insolvent general partnerships to enter into compromise arrangements with their creditors. These are known as partnership voluntary arrangements (PVAs). When contemplating such a compromise, however, partners must bear in mind that they are personally liable in full for the debts of the partnership. It is, therefore, advisable in most, if not all instances, for the partners to enter into IVAs to fully protect their interests.
Part II of the Insolvent Partnership Order 1994 (SI 1994/2421) (IPO 1994) as amended by the Insolvent Partnership (Amendment) (No 2) Order 2002 (SI 2002/2708) applies the provisions of Part I and Schedule A1 of the Insolvency Act 1986 (IA 1986) on CVAs to insolvent partnerships by means of a PV) (IA 1986, s 420).
Additional provisions of the IA 1986 are also applied to PVAs including:
IA 1986, ss 233 and 233A in relation to the supply of gas, electricity, water and communications and IT services to a partnership in a PVA
the Interpretation Provisions for the First Group of Parts set out in Part VII except IA 1986, s 250 Part XII dealing with preferential debts
IA 1986, Part XIII dealing with insolvency practitioners and their qualifications
IA 1986, sections 411, 413,
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