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Hi all

When the credoitors vote at the meeting and a 75% yes is required, is that 75% of the creditors or 75% proportioned as regards the debt?

I have got it in my head that if you have 4 creditors you need to have 3 vote yes. Is this right?

Does it make a difference if say one of your creditors held 75% of your debt and they voted no but the others voted yes?

No Kezza that is not correct.

The 75% majority comes from the votes actually cast by creditors at the meeting, and not on the overall debt. It is also based upon the amount owed rather than the number of creditors.

For example, if you have four creditors all owed £8,000 and only one votes in favour of the arrangment, with the others not bothering to vote, you are deemed to have 100% majority!

It is important to remember that the majority is caluclated on those who attend and vote (usually by postal proxy vote) and not the overall debt. I have many examples of IVA cases in my portfolio which have been approved on the vote of only one creditor, which binds the rest of them automatically.

In your example the creditor with 75% of the vote would force the IVA to be rejected. Hope I have explained this correctly, as sometimes even IP's get muddled with the voting rules!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

I think so,

Just to clarify,
1 creditor - 75% of debt - vote no
1 creditor - 5% of debt - vote yes
1 creditor - 5% of debt - vote yes
1 creditor - 15% of debt - vote yes

Overall this would be deemed as a rejection?

Yes - that is correct

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.
View my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Thank you for that melanie [:)]