Not bad19 Nov 2020 08:25
"A Company Voluntary Arrangement (CVA) is a statutory contract between a company and its creditors which allows for an indebted company to repay its debts in a more affordable way. As part of the CVA some debt will be written off with the rest being repaid through a series of monthly repayments. Contracts, including lease agreements, can be renegotiated in order to cut outgoings further.
CVAs must be supervised by a licensed insolvency practitioner who will be responsible for drafting the CVA proposal and negotiating with creditors.
In an ideal world a CVA should benefit both parties. The company is able to lower their monthly outgoings while continuing to trade, while its creditors stand to recoup more of the money owed than would be the case if the company entered liquidation."