Whilst voluntary arrangements, both IVAs and CVAs, seldom require technical legal input from lawyers due to their less formal nature than other forms of insolvency, the team at FWJ is consulted by insolvency practitioners on more complex arrangements and in particular, where one of our secured clients may have an interest.
Our team is well known to most UK asset based lenders and other leading financiers. We sit on the panel for many of them.
We are regularly provide advice to our finance clients when they are faced with a CVA or IVA proposal in respect of one of their own clients. We help them understand their rights of participation as a secured creditor. The lack of participation by secured creditors can derail a voluntary arrangement proposal by the unexpected enforcement of their security resulting in a panel firm of insolvency practitioners being appointed as administrators, contrary to the wishes of the directors and insolvency practitioners hoping to seek approval for an IVA or CVA.
- we have the confidence of many secured creditors who can be supportive of voluntary arrangements;
- we are regularly approached by insolvency practitioners who are not well known to secured creditors and who require our help in working through this risk.
The team is also often consulted by directors and insolvency practitioners requiring our input on unusual proposals or adjudicating claims for both dividend and voting purposes. We have, for example, advised the administrators of an estate agency on a workable CVA exit route by including a ring-fenced super-priority fund for landlord creditors where tenant’s deposits had dissipated leaving claims by tenants against the landlords directly.
If you would like to discuss any voluntary arrangement proposals with us, please do call a member of our Restructuring Team for assistance.