Company voluntary arrangement (“CVA”)

A CVA is a mechanism that allows an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts.

Creditors will usually agree to support a CVA where it can be shown they will achieve a better outcome than if the company was liquidated and the business and assets sold.

Should protection from external legal recovery be a relevant factor whilst preparing the CVA proposal the procedure may be initiated with a moratorium for smaller companies whilst for larger companies, protection from recovery action may be obtained by use of the administration procedure.

The crucial factor in rescuing a business and protecting creditors' rights is the early involvement of specialists.

If you would like some more information on the CVA services we provide, please contact corporate.insolvency@aabrs.com