Property law aspects of Company Voluntary Arrangements (CVAs)
Produced in partnership with Matthew Ditchburn and Tim Reid of Hogan Lovells International LLP

The following Restructuring & Insolvency practice note produced in partnership with Matthew Ditchburn and Tim Reid of Hogan Lovells International LLP provides comprehensive and up to date legal information covering:

  • Property law aspects of Company Voluntary Arrangements (CVAs)
  • What is a CVA?
  • How are landlords affected?
  • Rent reductions and other changes to the lease terms
  • Moratorium
  • Rent reductions
  • Other compromised liabilities
  • Options to determine
  • Landlord's right to terminate
  • Tenant's right to terminate
  • More...

Property law aspects of Company Voluntary Arrangements (CVAs)

What is a CVA?

A company voluntary arrangement (CVA) is an insolvency process that allows a company to enter into a contractual agreement with creditors to settle its unsecured debts or come to an arrangement with them over its affairs. The company's directors continue to operate the business, subject to the supervision of an insolvency practitioner.

Retailers in particular with large property portfolios often use so-called ‘landlord CVAs’ to restructure their rental obligations and close unprofitable stores. This note explains how property law and landlord and tenant issues may arise under such a CVA.

This note identifies provisions which are commonly found in CVAs and explains how they may operate in practice. However, each CVA will differ depending on the exact terms of the proposal. It is therefore essential to review the CVA proposal carefully to establish its impact on creditors.

This note does not provide detailed information on the mechanics of approving and implementing a CVA. For Practice Notes which deal with the CVA procedure, see:

  1. Company voluntary arrangements—an introductory guide

  2. The CVA proposal and procedure—the position under the Insolvency (England and Wales) Rules 2016

  3. The process and effect of approval of a company voluntary arrangement (CVA): the position under the Insolvency (England and Wales) Rules 2016

How are landlords affected?

Companies with large property portfolios often use CVAs as their preferred

Related documents:

Popular documents