Q&As

Where a tenant company has filed a company voluntary arrangement (CVA) and wishes to assign the lease, should the landlord deal with the tenant or its insolvency practitioners in that regard? And, in the context of a CVA, can the landlord request an authorised guarantee agreement from the original guarantor?

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Produced in partnership with Helen Galley of XXIV Old Buildings
Published on LexisPSL on 21/05/2019

The following Property Q&A produced in partnership with Helen Galley of XXIV Old Buildings provides comprehensive and up to date legal information covering:

  • Where a tenant company has filed a company voluntary arrangement (CVA) and wishes to assign the lease, should the landlord deal with the tenant or its insolvency practitioners in that regard? And, in the context of a CVA, can the landlord request an authorised guarantee agreement from the original guarantor?

Although the supervisor of a company voluntary arrangement (CVA) will be an insolvency practitioner (and their role is to ensure that the proposals accepted by the majority of creditors at the creditors meeting are implemented) the powers of the directors in relation to the day to day management of the company will continue. Thus, where the company subject to the CVA is a tenant of business or other premises, and wishes to assign the lease, the landlord should deal directly with the directors.

Entry into a CVA by a tenant does not in itself release the guarantors of the tenan

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