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Company Voluntary Arrangements (CVA)

What is a CVA?

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 relevant majorities vote in favour of the proposals at properly convened meetings of creditors and shareholders of the company. A CVA does not affect the rights of secured or preferential creditors unless they agree to the proposals.

Purpose of a CVA

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.
CVAs may also be used to avoid or supplement other types of formal insolvency procedures, such as administration or liquidation. 

Typically, CVA proposals will include a rescheduling or reducing of the company’s debts.

If we consider that a CVA may be appropriate then we would refer you to an insolvency practitioner.

If you are a business needing help in this area, please get in touch immediately so that we can assist.

Call Grimsby 01472 240 251, Louth 01507 600 610, Barton on 01652 632215 or Scunthorpe 01724 847 888.