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Company Voluntary Arrangement

Company Voluntary Arrangement – How can PBC Business Recovery & Insolvency Help?

PBC Business Recovery and Insolvency can undertake the following services:

For Directors

  • We can advise directors whether a CVA (and moratorium) is appropriate.
  • Where appropriate, we will firstly assist the directors with the preparation of the CVA proposal.
  • We will then act as nominee and convene the decision procedure.
  • Should the proposal be approved, we will then act as supervisor.

For Creditors

  • We can act on behalf of creditors who have received CVA proposals prepared by other insolvency practitioners.  If necessary, we can advise on whether the proposal should be accepted or modifications proposed and if necessary assist you with these modifications.


A Company Voluntary Arrangement (CVA) is a procedure which enables an insolvent company to reach an agreement with its creditors to delay or compromise the payment of its debts.  A CVA is flexible and can be adapted to meet the needs of any business and allows a company to propose repayments in line with what is affordable.

A CVA can be ideal where a company is suffering short term cash flow problems but there is an underlying viable business.  A CVA is designed to give a company more time and legal protection from its creditors to sort out its financial affairs.  Creditors will usually agree to support a CVA where it can be shown they will achieve a better outcome than if the company entered liquidation.

Company Voluntary Arrangement – How can PBC Business Recovery & Insolvency Help?

For a Free initial consultation
Telephone (01604) 212150 (Northampton office) or (01908) 488653 (Milton Keynes office)
Additional Information

Who can Instigate a CVA Proposal?

  • The directors of a company.
  • An administrator or liquidator if a proposal is a viable alternative or exit from administration or liquidation.

What Protection is Available to a Company from its Creditors?

For smaller companies, a moratorium is available which allows the company “breathing space” in which to propose and implement a CVA without the threat of proceedings by creditors.  For larger companies, and where the moratorium process is not suitable, protection from creditors can be obtained by placing the company into administration prior to proposing a CVA.

How is a CVA Proposed?

Once the directors have prepared a proposal (usually with the assistance of an insolvency practitioner) they nominate an insolvency practitioner to act as nominee, who invites creditors to consider the proposal using a decision procedure.  Creditors may approve, modify or reject the proposal on the support of 75% in value of the creditors voting (subject to a second vote of a majority of unconnected creditors).

What Happens Next?

When the proposal is approved, the nominee becomes the supervisor (or the creditors can choose to appoint an alternative) who takes responsibility for implementing the arrangement in line with the terms of the proposal.  The supervisor is responsible for receiving payments proposed within the CVA and distributing them to creditors in line with the terms of the proposal.  The supervisor may also consider requests to vary the terms of the arrangement and present such to the creditors.  In the event of default on the terms of the arrangement, the supervisor may present a winding up petition against the company.

The day-to-day running of the company remains (at all times) under the control of the existing directors and management.