Q&As

When serving a schedule of dilapidations and notice to reinstate on a tenant subject to a company voluntary arrangement (CVA), could the notice provisions in the CVA apply to service of the notice to reinstate under the lease, or is it likely to be sufficient to serve the notice to reinstate under the notice provisions in the lease (as it is a notice being served pursuant to the lease, not the CVA)?

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Published on LexisPSL on 01/04/2020

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • When serving a schedule of dilapidations and notice to reinstate on a tenant subject to a company voluntary arrangement (CVA), could the notice provisions in the CVA apply to service of the notice to reinstate under the lease, or is it likely to be sufficient to serve the notice to reinstate under the notice provisions in the lease (as it is a notice being served pursuant to the lease, not the CVA)?

When serving a dilapidations'>schedule of dilapidations and notice to reinstate on a tenant subject to a company voluntary arrangement (CVA), could the notice provisions in the CVA apply to service of the notice to reinstate under the lease, or is it likely to be sufficient to serve the notice to reinstate under the notice provisions in the lease (as it is a notice being served pursuant to the lease, not the CVA)?

A company voluntary arrangement (CVA) is a contractual agreement between a company (the tenant) and its creditors (including the landlord). Once the CVA has been approved by the requisite majority of creditors, it is binding on creditors, including the landlord. In relation to notices to be provided to the company subject to a CVA, there are two points that you will need to consider:

  1. is the schedule of dilapidations and notice to reinstate to be served in connection with a right arising under the CVA? For example, if the landlord were seeking to terminate the lease under the terms of the CVA, notice should be given in accordance with the CVA, see section entitled ‘Landlord's right to terminate’ in the Practice Note: Property law aspects of Company Voluntary Arrangements (CVAs)

  2. if not, does the CVA amount to a variation of the lease and therefore the notice provisions under the lease? Case law has

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