Company Voluntary Arrangements
A company voluntary arrangement (CVA) is a procedure that may help a company to address its financial difficulties. It is a compromise, or other arrangement, between a company and its creditors.
A CVA is implemented under the supervision of an insolvency practitioner. The insolvency practitioner is known as the nominee before the CVA proposals are approved, and as the supervisor afterwards.
A CVA binds all unsecured creditors of a company if the necessary majority of creditors vote in favour of the proposals at properly convened meetings of creditors.
The CVA procedure is intended to allow companies to avoid liquidation by coming to an informal, but binding, agreement or compromise with their unsecured creditors.
Typically, a proposal for a CVA will, fundamentally, include a rescheduling or reducing of the company’s debts.
If your business is encountering financial difficulties please contact one of our experts for a free, no obligation meeting to discuss your circumstances and the options available to you.