The following Restructuring & Insolvency guidance note provides comprehensive and up to date legal information covering:
A company voluntary arrangement (CVA) is a binding contractual agreement between a company and its creditors. A CVA proposal must involve one or both of two things:
an agreement to pay a sum in lieu of a larger debt or other obligation and/or
something less than the release or discharge of creditors’ debts, eg a moratorium (a period during which creditor action is suspended)
A CVA cannot, however, be used to alter the rights of secured creditors or to alter a preferential creditor’s priority, without the concurrence of those creditors affected.
Three-quarters in value of approving creditors can bind remaining creditors under a CVA. Once the CVA is approved, a nominee, or some other person appointed by the members and creditors in their place, takes office as supervisor.
There is no need to prove insolvency before a CVA can be initiated. For details on which companies qu
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