Negotiations are set to continue between major lenders and IVA providers
about altering fee structures following a crunch meeting between the two
However, controversial plans to cut fees were not discussed at the highly
anticipated gathering last week.
Capital One’s announcement that it would slash fees paid to insolvency
practitioners administering IVAs had caused a furore, and reports suggested the
issue would be top of the agenda at a meeting between the major lenders, the
British Bankers’ Association and IVA providers.
Instead, the parties tried to thrash out a way to alter fee structures paid
to practitioners that would enable lenders to receive more funds early on during
‘We were looking at identifying what came under the costs incurred by
[practitioners] before an IVA was agreed by creditors,’ said Eric Leenders, head
of the retail team at the BBA.
Leenders said the parties were ‘trying to get the right balance’ between how
fees were divvied out between the practitioner and the creditor, so creditors
received repayments earlier on in an IVA.
Michael Shirley, operations director at IVA provider
the meeting was ‘productive’.
The parties looked to set what constituted the costs practitioners incurred
prior to an IVA being agreed, which must be paid out before creditors receive
Creditors were also likely to be paid more frequently than at the current
rate, which is usually once a year. Monthly or quarterly payments are being
The IVA lobby group Debt Resolution Forum, which operates with the Insolvency
Practitioners Association as its secretariat and watchdog, was set to meet
yesterday to discuss the ‘unresolved’ issue of IVA fees at its conference.
‘While consensus on much exists, nothing has yet been agreed,’ said DRF
chairman Chris Holmes.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children