Company Voluntary Agreement

A Company Voluntary Agreement (CVA) is a formal, legally binding arrangement between a struggling business and its creditors. It allows the company to propose a plan to repay some or all of its debts over a set period, typically while continuing to operate. The creditors must agree to the terms, and if approved, the CVA protects the company from bankruptcy proceedings. This process helps the business restructure its finances and gives it a chance to recover while providing creditors with a potential return on their debts. It’s a way for companies to stabilize without liquidating.