Crowell & Moring
3 Experts
1 Contributions by Crowell & Moring Experts
PRACTICE NOTES
Introduction to company voluntary arrangements (CVAs)
A CVA offers a lifeline to a company under financial strain by enabling it to reorganise its liabilities. Unlike other insolvency routes, the directors retain control and the business broadly trades as usual, subject to oversight by an insolvency practitioner (the Supervisor). A CVA constitutes a statutory agreement between the company and its creditors, designed to secure a better outcome than a move into a formal insolvency process. Funding for the proposals may take the form of a single lump‑sum contribution or a fixed timetable of instalments across a set term (typically 1–5 years). Where 75% or more in value of the company’s creditors approve the proposals, they become binding on all unsecured creditors, including those who (1) opposed them and (2) were entitled to vote but did not receive notice of the decision
Restructuring & Insolvency
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