company voluntary arrangement
Under Part I of the Insolvency Act 1986, a company can obtain breathing space against its creditors through a moratorium during which it can seek to recover its solvency or at least reach a compromise arrangement whereby the creditors agree with the company on a formula for settling their debts.

Easyform Glossary of Law Terms. — UK law terms.


company voluntary arrangement
(CVA)
A compromise or other arrangement with creditors under Part I of the Insolvency Act 1986, which is implemented under the supervision of an insolvency practitioner (known as the nominee before the proposals are implemented, who then becomes known as the supervisor). The arrangement will be binding on creditors if the relevant majorities vote in favour of the proposals at properly convened meetings of creditors and shareholders of the company. The arrangement does not affect the rights of secured or preferential creditors unless they agree to the proposals. Since 1 January 2003, small companies have an optional moratorium before any CVA is put into place.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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