Judicial Variation of CVA
Corporate Rescue and Insolvency, Vol. 1, p. 156, 2008
9 Pages Posted: 9 Nov 2008
Date Written: November 7, 2008
A company voluntary arrangement ('CVA') under Part I of the Insolvency Act 1986 ('IA') is a statutory contract into which terms may be implied on ordinary contractual principles. Although some cases proclaim that the court has no power to vary the terms of a CVA or authorise a breach of the CVA terms, they have overlooked Re TBL Realisations which suggests the opposite. Re Beloit Walmsley  EWHC 1888 (Ch) has recently injected more disorder and sets a dangerous precedent for using CVAs to prefer a particular class of creditors.
Keywords: company voluntary arrangement, corporate insolvency, CVA
JEL Classification: K10, K11, K12, K19, K20, K29, K30, K39, K40, K49
Suggested Citation: Suggested Citation