Two recent High Court rulings have given hope to bondholder groups claiming an economic interest in an insolvency. The result has given them a much-improved negotiating position. Fraser Hern explains
A Company Voluntary Arrangement (CVA) made by a company with its creditors and members under Section 1(1) of the Insolvency Act 1986 is a composition in satisfaction of the company’s debts, or a scheme of arrangement of its affairs. Although reference is made under section 1(1) to a scheme of arrangement, the CVA is distinct in procedure and effect from the scheme of arrangement governed by Section 425 of the Companies Act 1985.
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