Restructuring & Insolvency analysis: HMRC sought the winding up of a company on grounds of public interest under section 85 of the Finance Act 2022 (FA 2022). The petition was listed for trial. The company had, after presentation of the petition, made a judicial review application challenging HMRC’s decision to present the petition. It then applied for a stay of the winding up proceedings. This was on the basis that it could not rely on public law defences at the trial of the petition, since those could only properly be dealt with by the Administrative Court. It was held that petitions under FA 2022, s 85 should be treated similarly to public interest petitions under section 124 of the Insolvency Act 1986 (IA 1986), and that there was no restriction on what defences the company could advance. Therefore, it was not appropriate to grant a stay. Written by Nora Wannagat, barrister at...
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In what circumstances can a CVA be proposed and by whom?What is a CVA?A company voluntary arrangement (CVA) is a binding arrangement made between a company and its creditors (Part I of the Insolvency Act 1986 (IA 1986)). It is the corporate equivalent of the individual voluntary arrangement (IVA).
A company subject to a winding-up petition settles the petition debt prior to advertisement and agrees with the petitioning creditor that an order will be sought at the hearing dismissing the petition. Notwithstanding non-advertisement of the petition, if a third party creditor indicates its
Dissolution of a company following compulsory liquidation or creditors' voluntary liquidationCompulsory liquidation or winding up by the courtWhere the Official Receiver is appointedOn the making of a winding-up order by the court, the official receiver (OR) is appointed as liquidator.When the OR
How to apply to restrain the presentation of or notification of a winding-up petitionOpposing a winding-up petitionEstablishing a debtThere is no requirement to serve a statutory demand on a company before presenting a winding-up petition in respect of it.It is a long established principle that
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