Company Voluntary Arrangement (CVA)
This is a formal process enabling a compromise to be entered into between a company and its creditors, based on a vote passed by a majority of creditors greater than 75% of those voting on the proposal.
All creditors are then legally bound to accept the terms of the arrangement, including those who were non-voting or did not receive notice of the meeting.
A CVA is a strategically valuable tool, particularly where there are dissenting minorities – and as licensed insolvency practitioners, we can accept appointment as nominees and supervisors of CVAs.
For a full explanation of Corporate Insolvency, click here.