WHAT IS A COMPANY VOLUNTARY ARRANGEMENT?
A Company Voluntary Arrangement ("CVA")
is an arrangement between the company and
its creditors.
The terms of the CVA are again known as the "proposal". The proposal contains details
which will typically be drafted by an IP on
behalf of the company for the consideration
of the creditors.
Creditors will be informed in advance by the
IP of a Creditors' meeting.
The Creditors will be able to vote at this
meeting in accordance with the value of their
debt.
A 75% majority will be required. The 75% majority
relates to votes in favour of the proposal
by creditors representing 75% of the value
of the company's liabilities.
A percentage of creditors' votes required
at all times relates to the body of creditors
who are entitled to vote and who have exercised
their entitlement. |
