Legal Practice Notes

What is a CVA? A company voluntary arrangement ( CVA) is an agreement between a company and its creditors, overseen by an insolvency practitioner. That practitioner is initially the ‘nominee’, becoming the ‘supervisor’ once the arrangement takes effect. A CVA is typically put forward by the company’s directors, although an administrator or liquidator can also make the proposal. Its objective is to compromise the company’s debts or to set out a scheme for managing its affairs. The principal legislative sources are sections 1–7B of the Insolvency Act 1986 ( IA 1986) and Part 2 of the Insolvency ( England and Wales) Rules 2016 ( IR 2016), SI 2016/1024. For further reading on CVAs, the steps to implement them and their effect, see the following Practice Notes: Company voluntary arrangements—an introductory guide In what circumstances can a CVA be proposed and by whom? The CVA...

This Practice Note provides an overview of company voluntary arrangements ( CVAs) and their effect on legal proceedings from a dispute resolution angle. What is a CVA? A CVA is a contractual deal between a company and its creditors, serving as the corporate counterpart to an individual voluntary arrangement for individuals. The principal advantages of a CVA are: no requirement to prove insolvency, enabling steps to be taken early at the first indications of financial difficulty if the requisite majority approves—75% in value of creditors present in person or by proxy and voting on the proposal, and not opposed by more than 50% of independent creditors (ie those who are not associates)—it can be imposed on unsecured dissenting creditors; this process is known as cramdown (see Practice Note: The CVA proposal and procedure) the proposal binds creditors who are unaware of the CVA...

The company voluntary arrangement ( CVA) proposal The CVA proposal sets out the terms of a compromise between a company and its creditors, so it must be thorough and correct. Where the proposal or the surrounding circumstances are intricate, a lawyer should prepare or review the draft to ensure it faithfully captures the intended arrangement. The document must be plain and easy to follow. It should also be fair to the company, its creditors and any other parties affected. This does not require identical treatment for all creditors, but to minimise the chance of challenge, any differential treatment must be defensible (see Practice Note: Challenging the approval of a CVA—unfair prejudice, material irregularity). A CVA can be put forward by: the directors, where the company is not in an insolvency process, or an administrator or liquidator If the CVA concerns a regulated firm (that is, firms...

Scope Part A1 of the Insolvency Act 1986 ( IA 1986) establishes a route by which directors of insolvent companies, or those likely to become insolvent, may obtain an initial moratorium lasting 20 business days. Its aim is to give otherwise viable businesses a protected window to restructure or secure new investment without creditor action. An insolvency practitioner is appointed as the ‘monitor’, while the directors continue to manage the company’s day-to-day affairs as a ‘debtor-in-possession’, subject to certain limits. The objective is a streamlined approach that minimises administrative burden, moves at pace, and avoids imposing disproportionate costs on distressed companies. Part 1A of the Insolvency ( England and Wales) Rules 2016, SI 2016/1024 ( IR 2016), sets out the procedural framework for the company moratorium. For further reading on the moratorium process, see Practice Notes: Moratorium Moratorium extension and...

This Practice Note uses IA 1986 to refer to the Insolvency Act 1986. Note: it summarises the key points relating to administration from a dispute resolution perspective. Although it addresses companies, an administrator can also be appointed over a partnership or a limited liability partnership. What is administration? Administration is a procedure that gives a financially distressed company breathing space to pursue a rescue or restructure, or to secure a better result for all creditors than liquidation. Designed to be short, it should usually last no longer than a year. An administrator—an insolvency practitioner ( IP) who manages the company’s business and property—must seek to achieve one of three purposes, in order of priority: rescue the company as a going concern achieve a better outcome for the company’s creditors as a whole than if it were wound up, or realise the...

STOP PRESS: On 16 March 2026, Companies House announced that, on Friday 13 March, it was made aware of a security problem which meant a logged-in user of the Web Filing service could, after carrying out a specific set of actions, in sequence, potentially access and change certain elements of another company’s details without their consent. Companies House has confirmed that no existing filed documents, such as accounts or confirmation statements, could have been altered. However, there is a risk that some personal details might have been accessed and that unauthorised filings could have been made. While information is limited at present and still emerging, this could potentially include, for example, a satisfaction of charge filing. Companies House has recommended that companies check their registered details and filing history without delay. Lenders may want borrowers to confirm that this has been done and that...

The effect of a scheme of arrangement (scheme) At the sanction hearing, the court may make an order approving a scheme. Under section 899(3) of the Companies Act 2006 ( CA 2006), a compromise or arrangement that the court has sanctioned is binding on: (a) all creditors or any class of creditors, or on the members or any class of members, as the case requires; and (b) the company, or, if the company is in the course of winding up, its liquidator and contributories. That position is, however, qualified by CA 2006, s 899(4), which provides that the court’s order does not take effect until a copy has been delivered to the Registrar of Companies ( Companies House). It follows that the effective date of a scheme is the date on which a copy of the order is filed at Companies House (see Q& A: how to...

This Practice Note This Practice Note explains how information set out in a document, or a statement given by or on behalf of a person, can be relied upon where authenticity must be verified in a commercial setting. It outlines the principal ways to validate information and documents, indicates when statutory declarations, oaths, affirmations and affidavits are appropriate, how to check they have been properly prepared, and offers guidance for practitioners when employing these validation methods. It sets out the requirements for: Statutory declarations Oaths Affirmations Affidavits Formalities for administering statutory declarations, oaths, affirmations and affidavits Statutory declarations and affidavits out of jurisdiction For information on notaries, their purpose, steps required to notarise a document and the meaning of legalisation, see Practice Note: Notaries and notarisation. For guidance on certified copies, including what a certified copy is, when a...

ARCHIVED : This Practice Note has been archived and is not maintained . The Commercial Rent ( Coronavirus) Act 2022 ( CR( C) A 2022) preserves and broadens the safeguards afforded to commercial tenants during the coronavirus ( COVID-19) crisis. It achieves this by ringfencing rent and service charge arrears built up while premises were mandated to shut, and by creating a statutory arbitration scheme through which sums can be written down or repayment postponed. A moratorium on landlord remedies also applies to shield tenants whilst arbitration is ongoing. Core provisions of CR( C) A 2022, together with the government’s Commercial rent code of practice following the COVID-19 pandemic (the Code), are outlined below. The government has additionally published statutory guidance on the Act’s terms. The window to commence arbitration has now closed, and with it the moratorium on landlord remedies where no...

Practice Note overview This Practice Note reviews the stages in negotiating commercial leases in England and Wales compared with Scotland, spanning pre-contract, contract, post-contract, completion and settlement, and post-completion and settlement... England and Wales / Scotland Pre-contract The tenant submits pre-contract enquiries to the landlord. The tenant undertakes due diligence, ordering required material such as official copies of the landlord’s title, land charges searches, coal mining reports and local authority enquiries. The landlord circulates a draft agreement for lease (incorporating standard conditions of sale), the draft lease and any other necessary drafts, for example a licence for fitting-out works. The parties negotiate the draft documents. The landlord secures any third-party consents needed for the lease, e.g. head landlord’s approval or a bank’s consent where there is a legal charge over the property. Once the paperwork is agreed, if...

Appeal work in civil proceedings is regulated by CPR 52 and its suite of practice directions: CPR PD 52A, 52B, 52C, 52D and 52E. PD 52A sets out the general rules on appeals, while PD 52C provides additional requirements for appeals progressing to the Court of Appeal. Taken together, these instruments govern the procedure for appeals. Initiating an appeal Alongside the general provisions in PD 52A, an appellant taking a case to the Court of Appeal must also adhere to PD 52C. Those rules cover, in particular, lodging the appellant’s notice with supporting documents, extensions of time for that filing, the grounds relied on, what applies when documents are missing, and service on the respondent. For more detail, see Practice Note: Starting an appeal in the Court of Appeal. Respondent's notice In general, the respondent only needs to act once told that the appellant has...

Practice Note The UK charities landscape is substantial, with varied pension arrangements across organisations. Many charities now contend with financial strain driven by multiple influences, including: rising operating expenses falling levels of giving weaker than expected investment returns Local authorities are increasingly outsourcing elements of their services to the private and third sectors—frequently housing, elderly care and youth provision. Charities and other not for profit bodies often assume these roles; in this note, references to a ‘charity’ also encompass a ‘not for profit organisation’. Any charity entering into a local authority contract must recognise the pensions consequences. A notable illustration came in September 2015, when it was reported that the Multiple Sclerosis Society planned to sell a support centre to meet costs arising from participation in the Local Government Pension Scheme. This Practice Note outlines the specific pension...

What is an employee benefit trust scheme? An employee benefit trust ( EBT) is frequently adopted by employers as a form of tax avoidance arrangement, whereby pay is routed to staff through particular kinds of employees’ remuneration trusts. Although such trusts may appear in many guises, with various models available, the EBT is the most widespread example of an employees’ remuneration trust. EBTs can also be used for purposes beyond tax avoidance. For further reading on EBTs, see: the following resources, with some examples set out below: Disguised remuneration and EBTs—overview Practice Note: What is an employee benefit trust? One principal aim of channelling remuneration via an EBT is to maximise the amount received by the employee, by permitting both employer and employee to avoid liability to income tax and Class 1 National Insurance contributions ( NICs). Put another way, inserting the trust...

It is fairly common for bankruptcy and divorce to be underway at the same time, and for each process to affect the other. For background and a fuller explanation of their interplay, see Practice Note: The impact of bankruptcy on divorce proceedings. Because bankruptcy can bear directly on divorce-based financial relief applications (often referred to as property adjustment orders), situations do arise in which a less scrupulous spouse may permit, or even precipitate, their own bankruptcy so as to derail existing divorce proceedings. In those scenarios, both the family court and the bankruptcy court hold powers, where the facts justify it, to scrutinise and challenge the making of the bankruptcy order and the overall consequences it produces. A summary of the challenges available The non‑bankrupt divorcing spouse has avenues to challenge, available in both the bankruptcy and family courts where appropriate and...

This Practice Note provides a concise overview of bankruptcy and its effect on legal proceedings from a dispute resolution standpoint, summarising key points in practice... What is bankruptcy? Bankruptcy is an insolvency route for individuals. It applies to individuals only. Prior to 6 April 2016—and in contrast to corporate liquidation—only the court had power to make an individual bankrupt. From 6 April 2016, a new bankruptcy applications regime took effect, replacing debtors' bankruptcy petitions, though creditors' petitions remained unaffected. Petitions lodged by debtors before that date were unaffected; now, anyone seeking their own bankruptcy must file an online application decided by an adjudicator—an official of the Insolvency Service—rather than the court. For more detail and background, see News Analysis: New bankruptcy applications regime to come into force. Once a bankruptcy order is made—by the court or by the...

The position of a personal pension on bankruptcy Once a bankruptcy order is made, the bankrupt’s estate automatically passes to the official receiver, or to an insolvency practitioner appointed at that time, who serves as the first trustee in bankruptcy. Certain items are excluded, such as tools and equipment needed for the bankrupt’s trade, and clothing and similar essentials necessary to meet basic domestic needs. This Practice Note explains what happens to an individual’s pension entitlements when a bankruptcy order is made. It looks at the impact of bankruptcy on occupational, personal and state pension arrangements. Bankruptcies predating 29 May 2000 This section applies to individuals made bankrupt following bankruptcy petitions lodged before 29 May 2000. Rights gained under personal and occupational pension schemes are generally recoverable by the trustee in bankruptcy. A debtor’s contractual rights under these arrangements are treated as choses in action within the broad...

At a convening hearing in November 2025, Argo Blockchain plc sought approval for a Part 26A restructuring plan ( RP), which received the court’s sanction in December 2025. Headline points are set out below (capitalised terms not defined here bear the meanings given in the convening and sanction judgments). This Deal Debrief sits within our Restructuring plans toolkit. For deeper insights into 2024 RP filings—covering key metrics and commentary from leading figures in restructuring—see News Analysis: Market Insights Trend Report—trends in Part 26A restructuring plans in 2024. Name of plan company Argo Blockchain plc (the Company) Industry sector Cryptocurrency mining Place of debtor’s incorporation and jurisdictional factors The Company was incorporated in England and Wales. Legal counsel involved The Company: Mr Matthew Abraham and Mr Rabin Kok (instructed by Fladgate LLP). Supporting Creditor ( Growler Mining Tuscaloosa, LLC ( Growler)): Mr Joseph Curl KC...

ARCHIVED ARCHIVED: This Practice Note was archived in April 2022 and is no longer maintained. For current information on government financial support during the COVID-19 pandemic, refer to the British Business Bank website... Scope This Practice Note, developed with James Collis and John Alderton of Squire Patton Boggs LLP, sets out the range of schemes and support measures launched by the UK government to help businesses respond to the COVID-19 pandemic. For easier reading, download a copy using the button at the top left and change the page layout to landscape... Financing Facility Support What help is available? What does the help involve? Which companies are eligible? What are the criteria (if any) for applying? How to apply Availability? Recovery Loan Scheme ( RLS) Replaced the earlier coronavirus ( COVID-19) loan schemes once they closed Loans are offered through a...

THIS PRACTICE NOTE APPLIES TO MULTI- EMPLOYER DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES Apportionment arrangements give departing employers from underfunded defined benefit ( DB) occupational pension schemes an alternative to settling in full a statutory liability arising under the Pensions Act 1995, s 75 (a s 75 debt), where an employment-cessation event has occurred. When such an employment-cessation event arises for an exiting employer, an s 75 debt becomes due from that employer to the scheme. In a multi-employer arrangement, the exiting employer’s s 75 debt represents its portion of the scheme’s deficit, assessed on a buy-out basis (its liability share). An apportionment arrangement, set out in the scheme rules, allows the scheme deficit to be allocated differently among the participating employers so that the exiting employer is attributed a smaller share than its liability share, with the remainder of what it would otherwise have paid...

At convening and sanction hearings held in August 2021, the joint administrators of the SME, Amicus Finance PLC (in administration), pursued approval for a Part 26A restructuring plan. The main points are outlined below (capitalised terms not defined here take the meanings used in the convening and sanction judgments). This Deal Debrief forms part of our Restructuring plans collection. For an in-depth review of key data from RPs filed in 2023 and insights from leading figures in restructuring, see Practice Note: Market Insights Trend Report—trends in Part 26A restructuring plans in 2023 [ Archived]. Name of plan company Amicus Finance PLC (in administration) (the Company) Industry sector Finance Place of debtor’s incorporation and jurisdictional factors England & Wales Timeline 20 December 2018: HGTL, acting as qualifying floating charge holder, appointed joint administrators over the Company. 7 May 2021: Practice Statement Letter ( PSL) issued (subsequently updated on 3 June 2021). 7 June 2021: Drafts of the...