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 聽who vote are in favour of a company鈥檚 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 聽can be 聽unfair to landlords, where a company鈥檚 future obligations to them under property leases are restructured by a company鈥檚 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.