Partnership voluntary arrangement (“PVA”)

This concept is governed by the Insolvent Partnerships Order 1994 and applies the CVA provisions laid out in the Insolvency Act 1986, albeit with certain modifications. The proposal for a PVA may be made by the members of the partnership other than in cases with existing insolvency procedures in place in which instance the proposal may be made by the Administrator, Liquidator or Trustee as may be relevant. If the PVA is approved at the specifically convened meetings of the members and creditors considering the proposal it has the effect of binding the creditors to the terms of that proposal as regards the partnership but does not affect a creditor’s rights as against the individual members of the partnership. Therefore, if the PVA is not likely to settle creditors’ claims in full it may be necessary for the individual members to consider protecting themselves by proposing a CVA or an IVA, depending on the status of the member.

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