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A company which was a connected creditor of K assigned part of its debt to an individual as a mechanism designed to ensure that an IVA was accepted by K’s creditors. Another creditor of K, a bank, applied to revoke the approval of the IVA on the grounds that there was a material irregularity at or in relation to such meeting and or that the decision of the chairman to treat the claim of the individual as a claim not associated with K be set aside.
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