Company Voluntary Arrangement

A Company Voluntary Arrangement is an agreement between the insolvent company and its creditors. The key features are as follows:

• It is a rescue procedure.
  
• A Company Voluntary Arrangement is usually made in full and final satisfaction of creditors' claims against the company.
  
• The proposal is usually made by the directors, but can be made by an administrator or liquidator.
  
• The proposal is considered by an insolvency practitioner appointed as nominee.  His report on the proposal and the proposal, itself, are then put before a creditors' meeting at which approval will be sought.
  
• The arrangement may be approved without alteration, rejected or approved subject to modifications proposed and agreed at the creditors' meeting.
  
• If the creditors' meeting approves the arrangement, all creditors who had notice and who could vote at that meeting are bound by the arrangement, as are any creditors who would have been entitled to vote at the meeting had they had notice of it.
  
• The approval of the arrangement can be challenged in court within 28 days of the creditors' meeting for material irregularity.
  
• Unless the approval of the arrangement is successfully challenged, the proposals are carried out under the guidance of the Supervisor appointed at the creditors' meeting.
  
• In certain circumstances a moratorium may be available to eligible companies, giving them protection from their creditors until the date of the creditors' meeting.

Call us on 0800 195 4585 if you require advice regarding Company Voluntary Arrangements