Trust Assets Held Under a CVA: Do They Survive the Termination of the CVA Through Liquidation?
Insolvency Lawyer, Vol. 5, 2002
8 Pages Posted: 18 Jan 2009 Last revised: 24 Jan 2009
Date Written: 2002
Abstract
Do trusts made under a company voluntary arrangement (CVA) that are held by the supervisor survive the termination of the CVA when the company is taken into liquidation? This was the question addressed by the Court of Appeal in the recent decision of Re NT Gallagher & Sons Ltd. 1 There are a number of contradictory High Court decisions on the question and this decision sought to clarify the area. This article will discuss the CVA provisions, before going on specifically to discuss the effect of the case.
Keywords: insolvency, debtor, creditor, insolvency, company voluntary arrangement, CVA, composition, trusts
JEL Classification: K00
Suggested Citation: Suggested Citation