Company Voluntary Arrangement

A Company Voluntary Arrangement (CVA) is a formal agreement between a company and its creditors to restructure its debts. It allows the company to propose a plan to pay back a portion of its debts over a set period, often while continuing to operate. The CVA is designed to help the company avoid insolvency by providing a manageable repayment schedule. Creditors can vote on the proposal, and if approved, it protects the company from legal actions while it fulfills the agreement, ultimately aiming to restore its financial stability.