Company Voluntary Arrangement

A Company Voluntary Arrangement is a procedure in which a plan of reorganisation takes place and which may involve delayed or reduced payments of debt or an orderly disposal of assets.

Business Recovery

A CVA procedure was introduced by the 1986 Insolvency Act and was designed to rescue businesses with a view to business recovery. The arrangement is suitable for companies who can offer a realistic repayment schedule.

Those proposing the arrangement appoint a nominee who must be an Insolvency Practitioner to prepare a report to the Court and to summon meetings of creditors and members.

In order for the arrangement to succeed 75% in value of the creditors must agree and the arrangement then becomes binding on all persons who had notice of the meeting and were entitled to vote at it.

Company Voluntary Arrangement - Supervision

A supervisor is appointed to oversee the arrangement and the supervisor may be the Nominee or any other Insolvency Practitioner.

What Next?

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