There has been a significant increase in the use of company voluntary arrangements (CVA), in particular, in the retail and hospitality sector over the last 12 to 24 months, largely impacting landlord creditors.
A CVA proposal can often run to hundreds of pages, and understanding what it means, how it impacts creditors and whether the terms offer a fair outcome can be difficult. Should a creditor vote in favour (or not)? Are there grounds for challenge? Our quick guide helps identify areas to consider when contemplating the answer to those questions.
While primarily considering the position of landlord creditors, the guide sets out points that are helpful to all creditors and corporates who might be considering a CVA, as well as how best to structure it to avoid challenge.
The structure and content of CVAs continually evolve, and we expect that to continue in 2021 as new challenges and ways of navigating economic challenges are explored. Our team of experts are available to discuss any questions you may have as a creditor or corporate.
For further developments and updates on the evolution of the CVA, please sign up to our blog Restructuring GlobalView.