Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Company voluntary arrangement definition

What does Company voluntary arrangement mean? A company voluntary arrangement (CVA) is a statutory restructuring that lets a company keep trading while compromising unsecured debts under a binding plan supervised by a licensed insolvency practitioner. It is used to avoid creditors’ voluntary liquidation, compulsory winding up or to exit administration, often to compromise landlord and trade liabilities. The regime is in Part I of the Insolvency Act 1986 and the Insolvency Rules 2016 (with parallels in the Insolvency (Northern Ireland) Order 1989), and operates similarly in England & Wales, Scotland and Northern Ireland. Directors, or an administrator/liquidator, propose the CVA through a nominee (who becomes...

CVAs and commercial leases: landlord impacts on rent, moratoria, termination options, forfeiture, surrender, guarantees, rent reviews and LTA 1954 issues (England and Wales)

Published by a LexisNexis Restructuring & Insolvency expert

Practice notes

What is a CVA?

A company voluntary arrangement (CVA) is a form of insolvency that permits a company to enter a binding agreement with its creditors to compromise unsecured debts or otherwise agree how its affairs are handled. The directors continue to run the business, under the oversight of an insolvency practitioner. Retailers, particularly those with extensive property portfolios, frequently adopt so‑called ‘landlord CVAs’ to reset rental commitments and shut loss‑making stores. This note outlines how property law and landlord and tenant considerations may emerge under such a CVA. It highlights provisions commonly included in CVAs and explains how they tend to work in practice. Nevertheless, each CVA will vary according to the precise terms proposed. It is therefore vital to examine the CVA proposal carefully to assess its effect on creditors. This note does not provide detailed guidance on the mechanics of approving and implementing a CVA. For Practice Notes addressing the CVA procedure, see:

Company voluntary arrangements—an introductory guide
The CVA proposal and procedure
The process and effect of approval of a company voluntary arrangement (CVA)

How are landlords affected?

Landlords are impacted in...

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Web page updated on 22/05/2026

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