INS10263 - Steps VAS takes

Modifications

Introduction

Discussing the proposals and modifications with the nominee

Introduction

Many arrangements are set out along the following lines

• definitions
• introduction and history
• assets included/excluded
• commercial offer ( INS10173)
• nominee/supervisor
• statutory information
• standard terms and conditions ( INS10265).

If a debtor’s proposals are not acceptable creditors may modify them to make them acceptable.

Modifications have to be agreed by the debtor and approved at the creditors meeting along with the proposals. Once approved they become part of the terms of the arrangement.

Discussing the proposals and modifications with the nominee

Your primary aim is to make recoveries through support of proposals. If proposals are not immediately acceptable within the seven-day turn round period

• Tell the nominee exactly why.
• Ask for any additional information you need and set an ‘end date’ for the nominee to provide it.
• Say how you will vote if it is not provided, that is, to reject or to impose modifications that the debtor may have to accept.

If not agreed by the ‘end date’ but outright rejection is not appropriate

• Formulate modifications to the commercial offer—which are justifiable and achievable by reference to the financial information supporting the proposal.
• Be prepared to discuss them with other listed creditors to obtain their views and support.
• Fax modifications to the commercial offer and/or terms and conditions of the proposal as early as possible to provide time for negotiation and agreement.

But

• Do not be pressurised by calls from the meeting. Agree an adjournment and timescale for negotiation.

Whenever agreement is reached and

VAS is to propose the modifications

• Fax these with a suitable proxy to the nominee.

The debtor is to propose the modifications

• Fax a copy of the agreed terms to the nominee with a proxy authorising the nominee to support the proposal and the debtor’s modifications “attached."

Carefully check the chairman’s report for the accuracy of approved modifications.

See also

R3 Standard Terms and Conditions INS10265
Other terms and conditions INS10267
VAS specific modifications INS10265