Company Voluntary Arrangement (CVA)

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 repayment plan, often involving reduced payments over a set period, while continuing its operations. This arrangement helps the business avoid liquidation and provides creditors with a chance to recover some of the owed amounts. The CVA must be approved by the creditors, and once accepted, it protects the company from legal actions by creditors during the repayment period.