overall debts of the company then they can be required to consider the proposal even when a winding up petition is issued. A petition may be stayed and adjourned if a carefully structured plan is put together. If required a CVA can be quickly prepared to show there is a “reasonable prospect” of the CVA being approved -
The formal moratorium is rarely used because it imposes potentially difficult conditions upon the insolvency practitioner in that a statement must be made that the company has the funds to continue to trade during the moratorium. The insolvency practitioner may not have sufficient knowledge of the company to make that statement.