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ARTICLE · 22 SEPTEMBER 2010

Counting the Creditors

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Where a company is subject to an insolvency process the acting insolvency practitioner must ensure the correct treatment of creditors; otherwise his decisions may be subject to challenge.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Derek Ellery
Derek Ellery
Steven Jansch
Steven Jansch

Where a company is subject to an insolvency process the acting insolvency practitioner must ensure the correct treatment of creditors; otherwise his decisions may be subject to challenge.

Two recent cases illustrate how this can throw up difficult issues for IPs and for creditors in establishing their claims.

Voting at a creditors' meeting according to the amount of a debt that is 'ascertained' - HMRC v Portsmouth City Football Club (in Administration)

Portsmouth FC, which was in administration, entered into a company voluntary arrangement, which was approved by creditors in June 2010. To enter a CVA the proposal must be approved at a meeting by at least 75% by value of the company's creditors.

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