How would a CVA work?

[forlanssister 3,050]

It goes to a CVA, just like the admins said today. Neither bid involves liquidation.

 

Not if the creditors don't agree to it though eh?

 

You seriously think the creditors will allow gratuitous alienation to take place without challenging it?

[Bears 0]

Not if the creditors don't agree to it though eh?

 

You seriously think the creditors will allow gratuitous alienation to take place without challenging it?

 

This is where i’m confused. If they knock it back, what does that mean? We go into liquidation and they get nothing? Or they get something from the sale of Ibrox MP etc?

[forlanssister 3,050]

This is where i’m confused. If they knock it back, what does that mean? We go into liquidation and they get nothing? Or they get something from the sale of Ibrox MP etc?

 

If they're not amenable to a CVA then they can petition for a winding up order (liquidation).

[Bears 0]

If they're not amenable to a CVA then they can petition for a winding up order (liquidation).

 

 

Which mean they think they’ll get more ££ from the sale of the clubs assets? In Laymens terms

[forlanssister 3,050]

Which mean they think they’ll get more ££ from the sale of the clubs assets? In Laymens terms

 

Yes that's correct.

[Bears 0]

Yes that's correct.

 

Thanks, i’ve totally buried my head in the sand from this angle of information gathering because i was hoping and praying it wouldn’t come to it. Just prepping myself for the worst now

[Zappa 0]

Just to back up and confirm what forlanssister is saying, here's a relevant section from the Insolvency Act 1986 -

 

Failure to obtain approval of administratorâ??s proposals

 

55

 

(1)This paragraph applies where an administrator reports to the court thatâ??

 

(a)an initial creditorsâ?? meeting has failed to approve the administratorâ??s proposals presented to it, or

(b)a creditorsâ?? meeting has failed to approve a revision of the administratorâ??s proposals presented to it.

 

(2)The court mayâ??

 

(a)provide that the appointment of an administrator shall cease to have effect from a specified time;

(b)adjourn the hearing conditionally or unconditionally;

©make an interim order;

(d)make an order on a petition for winding up suspended by virtue of paragraph 40(1)(b);

(e)make any other order (including an order making consequential provision) that the court thinks appropriate.

 

http://www.legislation.gov.uk/ukpga/1986/45/schedule/B1

[Bluedell 5,329]

It goes to a CVA, just like the admins said today. Neither bid involves liquidation.

 

Yes But what happens after the CVA? The football club is another company so what's the difference. Is Miller just going to leave the company lying doing nothing?

[Darthter 542]

Which mean they think they’ll get more ££ from the sale of the clubs assets? In Laymens terms

 

but what happens if all the assets have been transferred to another company??? does that not make the original PLC worthless???

[Bluedell 5,329]

but what happens if all the assets have been transferred to another company??? does that not make the original PLC worthless???

 

Yes, other than the cash it receives from the bidders which it would then use to pay off the creditors.