A Company Voluntary Arrangement (‘CVA’) is a formal process enabling a compromise to be entered into between a company and its creditors based on a vote passed by in excess of 75% of those creditors voting on the proposal.
Once approved all creditors are legally bound, including those who did not vote, voted to reject, or did not receive notice of the meeting. This is a powerful tool, particularly where there are dissenting minorities.
It is not essential for the debts of the company to be repaid in full, and often the CVA will allow the company to continue to trade and repay some or occasionally all of the debts over a period of time.
If you would like more information about how we can help you please contact one of our Insolvency Practitioners today.