000			02221cad a22001935a 4500
001			L138112
008			070517e2007 xxk f 000 0 eng d
035			_a(Sirsi) u138112
041	0		_aeng
245	0	0	_aPrudential Assurance Company Ltd and others Luctor Limited and others v PRG Powerhouse Limited and other and Anthony Murphy and others _h[electronic resource]
260			_c2007
520			_a[2007] EWHC 1002 (Ch) 1 May 2007. Concerned whether a company voluntary arrangement was effective to release a parent company from liability in respect of guarantees provided by it to landlords of premises let to its subsidiary. The subsidiary, with financial support from its parent company, had acquired a number of high street stores and superstores. The landlords had taken parent company guarantees or indemnities from the parent company in respect of the subsidiary 's obligations under the leases. The subsidiary had got into financial difficulties and wished to close a number of stores and to enter into a CVA under which those who were creditors in respect of the premises to be closed would receive 28p in the £ funded by the parent company, while the rights and obligations of other creditors would be unaffected. The landlords challenged the CVA as unfairly prejudicial under the Insolvency Act 1986 s.6 and sought declarations that it was invalid or ineffective in so far as it purported to affect the rights of the landlords. "Held": Each creditor was a party to the arrangement by virtue of being, and in the capacity of, a creditor of the company. It was the company, and not any third party, which had the benefit of, and could enforce the rights and obligations conferred by the CVA. The hypothetical agreement resulting from approval of a CVA was not therefore one between creditors as to rights and obligations between themselves in a capacity other than as creditors of the company.
590			_aKA NTK
650	2	4	_aINSOLVENCY ACT 1986 S6
651		4	_aEngland and Wales _y1543-
690			_aPROPERTY-LANDLORD AND TENANT-TENANCIES-FORFEITURE OF TENANCIES
856	4	0	_uhttps://www.bailii.org/ew/cases/EWHC/Ch/2007/1002.html _zView the item free of charge at www.bailii.org...
942			_n0
999			_c107005 _d107005