Tweet
Hi,
I'm looking for clarification on a company insolvency matter - the company put in place a CVA without administration in 2019, which then was terminated due to non-payment in June 2020. Following this, it was placed into administration through the out-of-court route in November 2020, ostensibly to protect from HMRC becoming a preferred creditor in line with updated legislation. Having reviewed this, I have been unable to ascertain whether out-of-court should have been ruled out within 12 months of the failure of the original CVA. Should the company have applied to the court for an administration order? Additionally, the supervisor of the failed CVA is now the insolvency practitioner supervising the administration - is there a conflict of interest there?
Thanks for any guidance you can give!
I'm looking for clarification on a company insolvency matter - the company put in place a CVA without administration in 2019, which then was terminated due to non-payment in June 2020. Following this, it was placed into administration through the out-of-court route in November 2020, ostensibly to protect from HMRC becoming a preferred creditor in line with updated legislation. Having reviewed this, I have been unable to ascertain whether out-of-court should have been ruled out within 12 months of the failure of the original CVA. Should the company have applied to the court for an administration order? Additionally, the supervisor of the failed CVA is now the insolvency practitioner supervising the administration - is there a conflict of interest there?
Thanks for any guidance you can give!
