CVA moratorium

A CVA (Company Voluntary Arrangement) moratorium is a temporary legal pause that protects a company from creditors' actions, such as lawsuits or insolvency procedures, while it seeks to negotiate a way to pay its debts over time. This moratorium gives the company breathing space to develop a plan with creditors without the pressure of immediate legal action, providing an opportunity to restructure and potentially avoid insolvency. It is a formal process designed to support companies in financial difficulty to find a workable solution and continue operating.