Company voluntary Arrangement ( CVA)

Question 1

What is the CVA ?

Answer 1

It is an arrangement between the company and its creditors, which sets outhow the company’s debts are to be paid and
in what proportions. It is intended as an alternative to
liquidation

Question 2

CVA must be approved….

Answer 2

by creditors

Question 3

If the CVA is approved it becomes binding on all
unsecured creditors. Secured Creditors remain entitled
to enforce their security against the company

Answer 3

The company may continue trading while the CVA is
taking place.

Question 4

CVA- Company Voluntary Arrangement

Answer 4

1) Company who is believed to be viable going forward, may agree a CVA with its creditors to pay back on agreed
proportion of debts over an agreed time period( usually between 2-5 years ).
2)CVA proposal must be agreed by at least 75 % of creditors ( value)
3) Monitored ad licensed by a licensed insolvency practitioner