Company Voluntary Arrangements
This is a formal process enabling a compromise to be entered into between a company and its creditors based on a vote passed by a majority in excess of 75% of those creditors voting on the proposal.
All creditors are legally bound including those who did not vote or did not receive notice of the meeting. This is a powerful tool, particularly where there are dissenting minorities.
It is not essential for the debts of the company to be repaid in full, and often the CVA will allow the company to continue to trade and repay the debts over a period of time.