Company Voluntary Arrangements

A Company Voluntary Arrangement (CVA) is a formal agreement between a financially struggling company and its creditors to repay debts over a set period, often with reduced payments or extended terms. It allows the company to continue operating while settling its debts in a manageable way. The arrangement is supervised by an insolvency practitioner and is binding on all creditors who agree, helping the company avoid insolvency or liquidation. Essentially, a CVA provides a structured plan for debt repayment, giving the company an opportunity to regain stability and continue its business.