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IVA Standard Conditions for IVA

Published:

09/01/2020

PART I: INTERPRETATION	5
1 Miscellaneous definitions	5
2 The Conditions	5

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

PART III: SUPERVISOR’S FUNCTIONS, POWERS ETC	9
12 Supervisor’s functions	9
13 Supervisor’s powers	9
14 Supervisor’s powers upon completion/termination	10
15 Exercise of Supervisor’s functions and powers	10
16 Restriction upon Supervisor’s duty and liability	10
17 Supervisor’s fees, costs and expenses	11
18 Supervisor’s resignation	11
19 Removal of Supervisor from office	11
20 Vacation of Office by Supervisor	12
21 Vacancy in the office of Supervisor	12

PART IV: DEBTOR’S WARRANTY, DUTIES & OBLIGATIONS	13
22 Debtor’s warranty	13
23 Debtor’s duties in relation to Supervisor	13
24 Further Documents	14
25 Debtor’s acknowledgement	14

PART V: ARRANGEMENT ASSETS	14
26 Arrangement assets	14
27 After-acquired assets	14
28 Trust of Arrangement assets	15
29 Restriction on dispositions	15

PART VI: CLAIMS	15
30 Notice to submit claims	15
31 Submission of claims	15
32 Variation of claims	15
33 Production of documents	15
34 Affidavit substantiating claim	15
35 Supervisor to allow inspection of claims	16
36 Admission and rejection of claims for Dividend	16
37 Appeal against decision on claim	16
38 Debts of uncertain value	16
39 Secured Creditors	16
40 Foreign currency Debts	17
41 Debts payable at future time	17
42 Interest on Debts	17
43 Cost of submitting claims	18

PART VII CREDITORS WHO DO NOT HAVE NOTICE	18
44 Claims arising where funds available	18
45 Claims arising where no funds available	18
46 Effect of claims on debtor	18
47 Notification of claims to Creditors	19
48 Claims arising after termination	19

PART VIII: PAYMENT OF DIVIDENDS	19
49 Distribution by Dividend	19
50 Notice of intended Dividend	20
51 Notice of declaration	20
52 Claim altered after payment of Dividend	20
53 Secured Creditors	21
54 Assignment of Debts or rights to Dividend	21
55 Debts payable at future time	21
56 Debts of unpaid Creditors	21

PART IX: PRIORITY OF PAYMENTS AND DISTRIBUTIONS	22
57 Costs and Expenses of the Arrangement	22
58 Priority of Debts and application of surplus	22

PART X: THE CREDITORS COMMITTEE & MEETINGS OF CREDITORS	22
59 The Creditors’ Committee	22
60 Power to call/requisition meetings of Creditors	23
61 Calling Creditors’ meetings	23
62 Cost of summoning meetings	24
63 Entitlement to vote	24
64 Admission and rejection of claim	24
65 Majorities required to pass resolutions	25
66 Chairman of meeting as proxy-holder	25
67 Suspension/adjournment of meeting	26
68 Record of proceedings	26
69 Postal resolutions	26

PART XI: PROVISIONS FOLLOWING BREACH OF THE ARRANGEMENT	27
70 Breach by the Debtor of the terms of the Arrangement	27
71 Procedure following breach	27
72 Retention of funds by Supervisor	28

PART XII: CONDITIONS WHERE TAX AUTHORITIES ARE CREDITORS	28
73 Claims by HM Revenue and Customs	28
74 Income commencing after approval	29
75 Post approval statutory returns and payments	29
76 Overdue accounts and returns	29
77 Funds to be paid to Supervisor	29
78 Restriction on payment of dividend	29
79 Set-off of repayments	29

PART XIII: MISCELLANEOUS PROVISIONS	30
80 Third Party obligations	30
81 Variation of the Arrangement	30
82 Tax liabilities arising on realisations	30

R3 Standard Conditions for IVA Version 2 – November 2004 – December 2012

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