- Creditor decision making—Bankruptcy vs IVA—and Tomlin orders—consumer credit? (Gertner and Another v CFL Finance Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- The stay issue
- The CCA/Tomlin order issues
- Case details
Restructuring & Insolvency analysis: Setting aside one of the largest bankruptcies ever to come before the English courts, Mr Justice Marcus Smith held that a judge ought to have stayed a bankruptcy petition to enable the debtor’s creditors to vote on an proposal for an individual voluntary arrangement (IVA) that was supported by the majority creditor and, therefore, bound to pass. In doing so the judge considered the factors to be taken into account when exercising the discretion to adjourn/stay a bankruptcy petition, and when weighing up differing views between creditors. He also examined the applicability of the ‘good faith principle’ to creditors of the debtor.
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