Company Voluntary Arrangement Administration

A Company Voluntary Arrangement (CVA) is a formal agreement between a struggling company and its creditors, allowing the business to restructure its debts while continuing to operate. In the context of administration, if a company faces severe financial difficulties, it can enter administration as a way to protect itself from creditors while a licensed administrator assesses its situation. A CVA can then be proposed, allowing the company to repay creditors over time, often at reduced amounts. This process aims to keep the business afloat and preserve jobs, while providing a fair outcome for creditors.