Company voluntary arrangements

This topic deals with company voluntary arrangements (CVAs) in the context of property insolvency.

A CVA is an agreement between a company and its creditors and is the corporate equivalent of individual voluntary arrangements (IVAs) for individuals. The main benefits of CVAs include:

•
there is no need to prove insolvency, so action can be taken early at the first signs of distress
•
dissenting unsecured creditors can be crammed down if the CVA is approved by 75% in value of creditors present in person or by proxy and voting on the proposal (and not opposed by more than 50%

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