Creditor's Voluntary Agreement

Basically, when the scum hit the wall (interesting analogy, I know!), they had to work out how much they could afford to offer the people who owed them money in repayment of their debts, and the period over which they will pay it. This has to be accepted by 75% of secured creditors to become legal.

Hence they got away agreeing to repay 5p in every pound they owed, whereas if they had been wound up, the only monies paid out to the debtors would have been from the sale of assets. Unsecured creditors would have got nothing unless there was money left over from paying the secured creditors in full after the asset sale.

Posted By: Iwan Husarmi, Sep 19, 19:24:56