“… can be breached if a creditor receives a collateral advantage from a third party in return for entering into the arrangement. In Cadbury Schweppes Plc v Somji [2001] 1 WLR 615 the debtor had proposed an IVA with his creditors under which they would receive 5 per cent of their debts. Cadbury Schweppes(“CS”) and three banks rejected th…”
“…on made available to creditors such as to make the IVA unenforceable. He therefore proceeded to make a bankruptcy order. The debtor’s appeal was dismissed: see [2001] 1 WLR 615. The Court of Appeal held the principle of good faith had not been abandoned or excluded by the statutory machinery introduced by IA 1986. It held that the jud…”