A CVA relies on 75% of the creditors agreeing the proposed restructuring of their debt. If more than 25% of creditors by value reject the CVA proposal then it will not be approved.
In more detail
The PPF will bail out pension funds for the benefit of employees so they do not lose out in the event of insolvency. Typical large companies using the PPF are Carillion and Toys R Us.
The PPF is entitled to a warning of possible insolvency and should be consulted by the insolvency practitioner dealing with the company early on. They are an important stakeholder in the outcome of the CVA and will usually be a large creditor.
The PPF could insist funds are put aside for employee pensions in the CVA – which might result in any CVA proposal being unworkable.
