CVA Proposal

The CVA Proposal, or Creditors' Voluntary Arrangement, is a formal agreement between a company in financial trouble and its creditors to pay back debts over time. It allows the company to continue operating while managing its financial obligations, usually by agreeing to pay a portion of what it owes. This arrangement is often used as a way to avoid bankruptcy, providing a structured plan for repayment that helps protect jobs and enables the company to recover. The proposal must be approved by a majority of creditors to take effect.