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News Article Comments : Hosts taking IVAs will forfeit pub licence
Licensees who take out individual voluntary arrangements (IVAs) to ease their financial problems face the almost certain loss of their pub business, trade leaders have warned.
Hosts hoping to ease their debts through an IVA face the automatic loss of their premises licence, and many more could breach their lease or tenancy.
The warnings follow the case of Punch licensee Robert Henderson, who was forced to forfeit his lease at the Wise Man, West Stafford, Dorset, after taking out an IVA.
Federation of Licensed Victuallers Associations chief executive Tony Payne said: “The conditions of many pubco agreements also state that an IVA means the automatic forfeiture of a lease.
“Clearly as the economic situation worsens and licensees struggle, more may be tempted to turn to IVAs as a solution. My advice would be for any host in this situation to come clean with their pubco and ask them for help.”
MA legal editor Peter Coulson said: “If a licensee becomes insolvent through an IVA or bankr
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martin kay 22/01/2009 19:48:49  |
RE: Hosts taking IVAs will forfeit pub licence I'm not too sure about all this, and the headline may be a little dramatic. If it is legally correct, and I have no reason to question Mr. Coulsons advice, then if the Premises Licence falls, well in most Pubco situations it is they themselves who hold it so that would not be the case in those circumsatances. Again on leasehold pubs, there is also no such thing as an automatic forfeiteure, but perhaps a cause for action. Methinks there is a litle more to this story than hits the press? edited by: martin kay at: 22/01/2009 19:49:56 This post replies to this thread |
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jeremy bowden 29/01/2009 16:55:37 |
RE: Hosts taking IVAs will forfeit pub licence Whilst the headline and legal comment are correct , there are at least three methods to preserve the Premises Licence and forefeiture by reentry is not possible without a court order once either an interim has been obtained or application fro an interim order has been made and a stay of any action is obtained. The key to not losing your pub is to pre plan the voluntary arrangement or insolvency . This post replies to this thread |
