How do we get an insolvency practitioner replaced?

[Emirates]

My company is a creditor of a business that is in a Partnership Voluntary Arrangement ("PVA"). The partners within the business are in turn both in IVA's.
The PVA/IVA's commenced in November 2011 and were scheduled to run for a period of 2 years. In November 2013 creditors voted to extend the arrangements by a further 12 months (we were the one creditor to vota against the extension proposals).
The original proposals were that creditors would be repaid in full - and receive interest. However, over the past 2 ½ years we have only received 2 dividends with these totalling less than 15% of the value of our debt.
It is apparent, and has been throughout the PVA/IVA's, that the partners are not fully co-operating with the appointed insolvency practioner ("IP"). The IP in turn appears to be next to useless and clearly lacks any great desire to push things along.
What can we do? Ideally I would like to see the IP replaced with somebody stronger willed however, as our debt is only in the region of 11% of what the partnership owes to its creditors, I'm not sure what rights / powers we have in petitioning for such action.

 

[Forbes Burton]

I am sure that there are ways in which replacement of an Insolvency Practitioner can be made. Perhaps the first thing to do is speak to another IP, whom you feel may produce a better outcome for yourself. The IP will surely know ways in which they can take over the appointment - such as a proxy hunt. Was there any clause in the PVA & IVA in respect of default ?

 

[ReSolve]

Replacing an IVA/PVA Supervisor is not an easy thing to do once the arrangement has been agreed. It sounds to me as if a meeting was called to approve the extension but possibly not the change in contribution unless it is still anticipated there will still be a 100 per cent return. In the first instance you should ask the Supervisor to explain why there has been a material shortfall in the arrangement, assuming this was not explained prior to the meeting. You should then get advice regarding the arrangement itself as this is the contract between you and the individuals and the partnership. It is the Supervisors role to make sure all parties adhere to this contract. If there has been a breach such as a material underpayment of contributions (this will depend on the wording of the arrangement) then you should ask the Supervisor to explain what has been done to remedy the breach as per the arrangement. Most IVAs and PVAs should include clauses setting out what should be done in the event a breach is not remedied. The arrangement will normally instruct the Supervisor to retain sufficient funds to cover bankruptcy petitioning costs in the event of a failure of the IVA or PVA. If the Supervisor does not respond to your enquiries then you could consider making a formal complaint on the Insolvency Services Creditor Complaint gateway.

Simon

 

[Alan R Price]

I agree with Simon - couldn't have put it better myself.

 

[Spongebob]

I agree with Simon - couldn't have put it better myself.

Except you might have used paragraphs?

 

[Alan R Price]

Miaow!