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IVA Standard Conditions for IVA

Published:

14/01/2020

PART I: INTERPRETATION	1
1 Miscellaneous definitions	1
2 The Conditions	2

PART II: COMMENCEMENT, EFFECT AND DURATION OF ARRANGEMENT	2
3 Commencement of Arrangement	2
4 Nature and effect of the Arrangement	2
5 Existing proceedings against Debtor	3
6 Existing execution against Debtor’s assets	3
7 Mutual credit and set-off	4
8 Duration and expiry of Arrangement	4
9 Full Implementation of Arrangement	5
10 Substantial Compliance	5
11 Termination of Arrangement	5

PART III: SUPERVISOR’S FUNCTIONS, POWERS ETC	6
12 Supervisor’s functions	6
13 Supervisor’s powers	6
14 Supervisor’s powers after expiry, full implementation or termination	6
15 Exercise of Supervisor’s functions and powers	7
16 Restriction upon Supervisor’s duty and liability	7
17 Supervisor’s fees, costs and expenses	7
18 Supervisor’s resignation	8
19 Removal of Supervisor from office	8
20 Vacation of Office by Supervisor	9
21 Vacancy in the office of Supervisor	9
22 Release of Supervisor	9

PART IV: DEBTOR’S WARRANTY, DUTIES & OBLIGATIONS	10
23 Debtor’s warranty	10
24 Debtor’s duties in relation to the Supervisor	10
25 Further Documents	10
26 Debtor’s acknowledgement	11

PART V: ARRANGEMENT ASSETS	11
27 Arrangement assets	11
28 After-acquired assets	11
29 Trust of Arrangement assets	11
30 Restriction on dispositions	12

PART VI: PROOFS OF DEBT	12
31 Notice to submit Proofs	12
32 Submission of Proofs	12
33 Withdrawal and variation of Proofs	12
34 Production of documents	13
35 Witness statement substantiating Proof	13
36 Supervisor to allow inspection of Proofs	13
37 Admission and rejection of Proofs for Dividend	13
38 Appeal against decision on Proof	13
39 Debts of uncertain and small value	13
40 Secured Creditors	14
41 Foreign currency Debts	14
42 Interest on Debts	14
43 Cost of submitting proofs	15

PART VII CREDITORS WHO DO NOT HAVE NOTICE	15
44 Proof arising where funds available	15
45 Proof arising where no funds available	15
46 Effect of Proof on Debtor	15
47 Notification of Proof to Creditors	15
48 Proof arising after Arrangement ceases to have effect	16

PART VIII: PAYMENT OF DIVIDENDS	16
49 Distribution by Dividend	16
50 Notice of intended Dividend	16
51 Notice of declaration	16
52 Proof altered after payment of Dividend	17
53 Secured Creditors	17
54 Assignment of Debts or rights to Dividend	18
55 Debts payable at future time	18
56 Debts of unpaid Creditors	18

PART IX: PRIORITY OF PAYMENTS AND DISTRIBUTIONS	18
57 Costs and Expenses of the Arrangement	18
58 Priority of Debts and application of surplus	19

PART X: THE CREDITORS’ COMMITTEE, WEBSITES & CREDITOR DECISIONS	19
59 The Creditors’ Committee	19
60 Use of websites	20
61 Power to seek a decision of Creditors	20
62 Procedure for seeking Creditor decisions	20
63 Cost of requisitioned decisions	21
64 Participation in Creditor decisions	21
65 Admission and rejection of Proofs	22
66 Majorities required for Creditor decisions	22
67 Chair of meeting as proxy-holder	23
68 Suspension/adjournment of meetings	23
69 Record of Creditor decisions	23

PART XI: PROVISIONS FOLLOWING BREACH OF THE ARRANGEMENT	23
70 Breach by the Debtor of the terms of the Arrangement	23
71 Procedure following breach	24
72 Retention of funds by Supervisor	25

PART XII: CONDITIONS WHERE TAX AUTHORITIES ARE CREDITORS	25
73 Claims by HM Revenue and Customs	25
74 Income commencing after approval	25
75 Post approval statutory returns and payments	25
76 Overdue accounts and returns	25
77 Funds to be paid to Supervisor	25
78 Restriction on payment of dividend	25
79 Set-off of repayments	26

PART XIII: MISCELLANEOUS PROVISIONS	26
80 Third Party obligations	26
81 Variation of the Arrangement	26
82 Tax liabilities arising on realisations	27
83 Invalidity and/or illegality	27

IVA Standard Terms Version 4 – Jan 2018

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