Company voluntary arrangement (CVA) research report for the Insolvency Service
Company voluntary arrangement research report
Applies to England, Scotland and Wales
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A company voluntary arrangement is a procedure within which a company can restructure its debts and obligations via an offer to its creditors. Provided that greater than 75% (in value) of creditors who vote are in favour of a company’s proposal, it is binding on all creditors (more than half of creditors unconnected with the company must also be in favour).
In recent years, there has been criticism that the procedure can be unfair to landlords, where a company’s future obligations to them under property leases are restructured by a company’s proposal. For this reason, the Insolvency Service commissioned RSM UK to carry out research into the area and their report was published 28 June 2022.