Bankruptcy, Individual Voluntary Arrangement and Winding-up of Companies
Read whole topic Back Print Forward

3. What should be stated on the IVA proposal?

Followings are some items suggested by the Official Receiver's Office (with reference to Rule 122C(2) of the Bankruptcy Rules).

Overview of the contents

The following matters or items must be stated or otherwise dealt with in the proposal:

(i) the debtor's assets, with an estimate of their respective values and the basis of that estimate, and the extent (if any) to which the assets are charged in favour of the creditors;

(ii) particulars of any property, other than assets of the debtor, which is proposed to be included in the arrangement, the source of such property and the terms on which it is to be made available for inclusion;

(iii) the nature and amount of the debtor's liabilities (to the debtor's immediate knowledge), the manner in which they will be met, modified, postponed or otherwise dealt with by means of the arrangement;

(iv) the proposed duration of the voluntary arrangement and the proposed dates of repayment distributions to creditors, with estimates of their amounts;

(v) whether any, and if so what, guarantees have been given for the debtor's debts by other persons;

(vi) whether, for the purposes of the voluntary arrangement, any guarantees are to be offered by any persons other than the debtor, and whether (if so) any security is to be given or sought;

(vii) the name, address and qualification of the person proposed as the Nominee of the voluntary arrangement, and confirmation that the person is (as far as the debtor is aware) experienced and qualified to act as a Nominee in relation to the voluntary arrangement either as Trustee or otherwise for the purpose of supervising its implementation;

(viii) the amount that will be paid to the nominee by way of remuneration and expenses;

(ix) the functions that are to be undertaken by the nominee;

(x) the manner in which funds (e.g. debtor's assets) that are to be held for the purposes of the arrangement are to be banked, invested or otherwise dealt with pending distribution to creditors;

(xi) if the debtor has any business, then the manner in which it will be conducted during the course of the arrangement.

(For more details of the suggested content for IVA proposals, please see the webpage of the Official Receiver's Office.

Top