Would your business benefit from a company voluntary arrangement?
A company voluntary arrangement (CVA) is a legally binding agreement between an insolvent company and its creditors. The CVA begins as a proposal that is sent to the creditors and shareholders of the insolvent company for their formal approval.
The agreement demonstrates why the creditors and shareholders would be better off approving the CVA proposal versus rejecting the CVA for an alternative insolvency method (such as creditors voluntary liquidation). The terms and obligations of the agreement are detailed within the CVA proposal and detail how much and when the insolvent company is required to pay contributions to the supervisor of the CVA.