A Voluntary Arrangement is a contract entered into between a company and its creditors, under which the Company typically makes a proposal to pay a lesser sum to the creditors in full and final settlement of debts. The creditors formally approve or reject the proposal at a formal meeting. The arrangement is legally binding on the Company and the creditors, and normally lasts for between 3 and 5 years.

CVA’s can be a very effective rescue tool for companies which have an underlying profitability, but which have encountered cash flow difficulties, or which have undergone a restructuring but are unable to service historic debts.

A CVA can be an attractive option as the Board, not the insolvency practitioner, remain in control of the Company. But for a CVA to be successful it is crucial to establish that the business is viable. We can assist with the drafting and implementation of fair and reasonable CVA proposals, and have a strong record of delivering CVAs with successful outcomes for all stakeholders.