- Challenging IVA voting on the basis of material irregularity (Re Rossi)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: This case considered material irregularity of a creditors’ meeting to consider an individual voluntary arrangement (IVA) proposal, in circumstances where a creditor in favour of the IVA challenged the decision to reject on the basis the full debt owed to him had not been counted in the voting. The court held that the onus was on the creditor to provide sufficient details of the debt to the nominee to enable the nominee to admit the debt for voting in an appropriate minimum value, and any failure to do so—even in circumstances where the creditor was not English speaking and where the debtor accepted the liability—would not allow for a successful challenge. Written by Katie Farmer, legal director at Ashfords LLP.
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