Abstract:
There are numerous statutory regimes, applying both to individuals and companies, which permit debtors to enter into compromises with their creditors. The common feature of these mechanisms is that they allow the compromise to be imposed upon dissenting unsecured creditors if a sufficient number are in fact agreeable. The right of secured creditors to enforce their security is however almost always protected, either expressly, or by the device of class voting. Part XV of the Insolvency Act 1967 is unusual in that it contains no explicit protections, nor is there any requirement for class voting. In fact, on its face, it does bind secured creditors. There is even a Court of Appeal dictum to this effect. This article considers the extent to which secured creditors are (or can be) affected by Part XV proposals.
