Company Voluntary Arrangement

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	Status			This is an arrangement whereby an insolvent company can continue trading, with the consent of the creditors who will have agreed to only receive part-payment of their debt.
	Appointee			The company appoints an insolvency practitioner as nominee. The directors remain in office, and unlike any other insolvency arrangement, they retain their powers.
	Procedure and outcome			The directors will call a creditors' meeting. The nominee will present the directors' proposals for the future of the business, and the creditors will be asked to vote to either accept or reject the arrangement. The advantage of accepting a CVA proposal is that it allows the company to continue to trade. The company should be in a better position to repay a higher proportion of the debt then might be the case if it went straight into liquidation. If the proposals are approved, the court is advised and they then appoint a supervisor (insolvency practitioner) to oversee the implementation of the scheme. At the conclusion of the arrangement, the supervisor's role comes to an end, and the company can continue trading normally. If the creditors fail to approve the prosposal, or the arrangement subsequently fails, the company will go into liquidation.
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