4. What are the consequences for the debtor if the IVA proposal is approved?
The proposal is effective from the date of the creditors' meeting on approval of the proposal. The Nominee appointed at the meeting will take control of all of the debtor's assets that are included in the IVA proposal, and the debtor should follow the approved proposal to repay the debts.
Any bankruptcy petition entered previously against the debtor will be dismissed by the Court. In case of any existing Bankruptcy Order, the Court may cancel it, with or without conditions.
However, if the IVA proposal cannot be approved by all necessary parties or if the debtor has failed to perform all of the obligations as stated on the IVA proposal, then the creditors may still proceed with the bankruptcy petition against the debtor.
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