The creditor alleged a right to recover against the estate citing an unfair prejudice from the IVA.
Held: He had been unfairly prejudiced. The IVA precluded him, like all the other unsecured creditors, from suing the debtor for the full amount of his claim
Where a claim in a debtor’s estate was in respect of a claim which remained unliquidated, and an insolvency arrangement could very substantially prejudice that claim, the creditor was entitled to relief against the proposed arrangement; however, the prejudice to the applicant must be prejudice as a creditor of the debtor and not in some other capacity.
Judges:
Richard McCombe QC
Citations:
Times 23-Oct-1998, [1999] BCC 924, [1999] 1 All ER 4 628
Statutes:
Insolvency Act 1986 262, Third Party (Rights Against Insurers Act) 1930
Jurisdiction:
England and Wales
Cited by:
Cited – Wright and Another (Liquidators of SHB Realisations Ltd) v The Prudential Assurance Company Ltd ChD 6-Mar-2018
IVA is a special form of contract
Liquidators asked the court whether sums sought by the insolvent company’s landlords were payable and or provable. Under an IVA, the copany had been paying reduced rents, but the arrangement document provided that the full rents would be restored on . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 11 May 2022; Ref: scu.89073
