Role of the Insolvency Practitioner in Finalizing a Company Voluntary Arrangement

When it comes to the company voluntary agreement, the role of an insolvency practitioner is very big. The first thing an insolvency practitioner is required to do is to write up the guidelines and the suggestions for the insolvent business, which would help the company in securing the confidence of its creditors that the company would pay off their debts if it is given some more time. But to do this, the insolvency practitioner needs to become a nominee of the company voluntary agreement.

Besides, the insolvency practitioner is also required to meet with the big creditors of the company, especially the banks, which are in most probability the largest creditor of the company. This meeting is essential, as the motive of this meeting is to secure the commitment of the creditors in further supporting the company financially, without pressing much for the return of debt. The final draft of the company voluntary arrangements proposal is filed before the court along with the report of the nominee, i.e. the report of the insolvency practitioner itself. Besides, a copy of the proposal is also sent to each of the creditors in order to let them know about the further course of action of the company.