Company Voluntary Arrangement
/ˈkʌmpəni vɒlənˈtɛri əˈreɪndʒmənt/
Definitions
- (n.) A legally binding agreement between a company and its creditors to repay debts over time, allowing the company to avoid insolvency and continue trading.
The company entered into a company voluntary arrangement to restructure its debts and avoid liquidation.
Forms
- company voluntary arrangement
- company voluntary arrangements
Related terms
See also
Commentary
A CVA provides a flexible alternative to liquidation and is typically proposed by the company’s directors and approved by creditors; clear drafting ensures binding obligations on all parties.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.