Claims against companies subject to a company voluntary arrangement (CVA)
Claims against companies subject to a company voluntary arrangement (CVA)

The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:

  • Claims against companies subject to a company voluntary arrangement (CVA)
  • Practical issues to consider before bringing a claim against a company subject to a CVA
  • Is the claimant bound by the CVA?
  • Is there a moratorium in place (where the CVA has not yet been approved)?
  • Challenging the CVA absent bringing a claim against the company
  • Claims by post-CVA creditors

The purpose of this Practice Note to is touch on some of the considerations that must be considered where someone wishes to commence a claim against a company subject to a company voluntary arrangement (CVA). This Practice Note does not deal with the procedure and process for a company entering into a CVA, the moratorium in CVAs and its effect, the overall effect of a CVA, or the ways to challenge a CVA. For further reading on these topics see:

  1. Practice Note: In what circumstances can a CVA be proposed and by whom?

  2. Practice Note: Effect of a moratorium in a company voluntary arrangement (CVA) on creditors and the company

  3. Practice Note: The CVA proposal and procedure—the position under the Insolvency (England and Wales) Rules 2016

  4. Overview: Company Voluntary Arrangements

  5. Practice Note: Proprietary claims

Practical issues to consider before bringing a claim against a company subject to a CVA

Is the claimant bound by the CVA?

The first question the claimant must consider is whether it is bound by the terms of the CVA and is therefore—probably—restricted from bringing any claim.

Broadly speaking, a creditor of a company is bound by the CVA, even where they v