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Written question asked by Lord Myners (Crossbench) on Wednesday, 24 April 2019, in the House of Lords. It was due for an answer on Thursday, 9 May 2019. It was answered by Lord Henley (Conservative) on Thursday, 9 May 2019 on behalf of the Department for Business, Energy and Industrial Strategy.


Company Voluntary Arrangements

Question

To ask Her Majesty's Government whether they intend to commission a review of the use of Company Voluntary Arrangements (CVAs), in particular to consider whether CVAs are used in good faith by landlords who have weakened the lessor covenant through previous payments of high dividends or capital distributions.

Answer

Company Voluntary Arrangements (CVAs) are a valuable part of the restructuring framework and there are no plans to review their use at this time. The Government consulted on a wide-ranging package of reforms to corporate insolvency in 2018, to enhance rescue prospects and also to address poor corporate behaviour. Following this consultation, Government announced it will strengthen the powers available to insolvency practitioners to take recovery action where value has been extracted from a company prior to its insolvency, thereby increasing the protections already available to creditors. These proposals will be introduced when parliamentary time permits.


Secondary information

Type
Written question
Reference
HL15286
Session
2017-19
Related items
Insolvency
Monday, 17 June 2019
Written questions
House of Lords
Subjects
Reviews Company voluntary arrangements
Link
View this Written question on www.parliament.uk