The Creditors Meeting

[ugo]

Hi,

I am in process of an IVA and I have already met my IP. The creditors meeting is due next week and I am very nervous about this. Can you please give me information about the meeting and the way the voting works?

Thank you all for this very useful site.

Ugo

[iva_squirrel]

Hello Ugo,

I am glad to hear that your IVA is in progress.

After the proposal has been prepared and certified as fit by the Nominee, it must be sent to Creditors with notice convening a meeting which must take place between 14 and 28 days therefter. The purpose of the meeting is to allow creditors to vote on the proposal. They may require the applicant’s agreement to modifications of the proposal.

In practice, few meetings are attended by many creditors, who generally prefer to lodge their votes by post and discuss any proposed modifications over the telephone.

Providing more than 75% of those creditors, in value, voting at the meeting support it, the proposed Arrangement will be binding upon all the Creditors. If agreement cannot be reached, the meeting can be adjourned to discuss modifications that all parties find acceptable.

All the best,

For more information about IVAs, please visit my website:
www.supersonicsquirrel.net

[accgroup]

Hi Ugo

I am sure there is nothing to be nervous about, as stated above by IVA Squirrel, creditors do not usually attend the meeting and vote by post using a proxy form. The proxy form will state whether the creditor is voting to accept, reject or accept with modifications. Your IP has presumably explained to you that creditors can put forward modifications to your proposal? Creditors put forward these modifications in an attempt to obtain a higher dividend, based on the information you have put forward. Your IP will discuss any proposed modifications with you and you will have to consent to them, otherwise the creditor's vote will count as a rejection.

Your IP will probably ask you to sign a list of the modifications to confirm your consent.

As stated above, 75% (in value) of creditors actually voting have to vote in favour in order for the IVA to be approved. Your IP will be able to adjourn the meeting for up to a maximum of 14 days if no proxies are received in time or if you need to negotiate with the creditors over the modifications put forward.

Good luck with the meeting.



AccumaGroup
http://www.accumagroup.com - One of the UKs leading debt and insolvency advice firms with over 200 employees.