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What is a company voluntary arrangement?

A company voluntary arrangement (or CVA) allows directors of a financial distressed company to reach an agreement with its creditors regarding payment of its debts.  A CVA offers a positive way forward for a potentially viable business

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The process

The CVA process has to be carried out by a licensed insolvency practitioner but unlike administration and liquidation the directors remain in control. This process is not dissimilar to the Chapter 11 process in the US where companies attempt to trade out of difficulties while receiving Court protection from creditors.

Advantages of a CVA are that creditors cannot take action against the company during the CVA and once it has been completed the company has no liability to its pre CVA creditors.  Although a CVA is not suitable for every financially distressed company it can allow the company to trade through its difficulties and give the directors more time to get their finances back on track without threat from creditors.

When might a CVA be appropriate?

  • When a company is struggling under the burden of debts but still a viable business.
  • For directors wishing to retain control of the company so it can trade out of difficulties.
  • Where creditors can be reassured that the repayment proposals are realistic.

Key points to remember

CVAs are usually only suitable for companies that have a potentially viable business not too damaged by a prolonged period of financial difficulties. Seeking early advice can mean the difference between rescue and insolvency.

How can we help?

Our experts are able to help you maintain business’s critical cashflow functions – by sitting alongside you in negotiations with suppliers, HMRC and banks and even providing interim management solutions.

Hayley Watson

Director

Norwich office contact details:

Cambridge office contact details:

Hayley started her career working at McTear Williams & Wood Limited in 2005 and is a Licensed Insolvency Practitioner advising companies and individuals experiencing financial difficulties and orks with a variety of stakeholders to establish and implement the best strategy for individuals and companies experiencing financial difficulties.

Hayley acts as an Insolvency Practitioner in all forms of corporate insolvency including creditors’ voluntary liquidations, compulsory liquidations, solvent members’ liquidations and company voluntary arrangements as well as advising individuals where she acts as an insolvency practitioner in individual voluntary arrangements and bankruptcies.

Hayley qualified as a Licensed Insolvency Practitioner in 2019 and wasw appointed  Director in March 2024.  She is currently Chair of the R3 Eastern region committee and has over 19 years of experience in insolvency.

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Emergency business funding

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"Unfortunately, Gordon Dean Solicitors LLP got into debt in the 2020 pandemic, mostly with HMRC but recovered strongly making good profits but this was not enough to recover fully and having sought and failed to achieve further refinancing I visited insolvency practitioners McTear Williams & Wood who were very professional and arranged a liquidation on 1 April 2022. Gordon Dean Solicitors Ltd bought the assets of the firm and started trading from new offices. HMRC will get paid by the liquidators over the next few years."
Gordon DeanSenior Partner of Gordon Dean Solicitors Ltd
"Bethan and Tony acted not only with kindness and humanity, but professionalism! Also thanks to Chloe and Jamie for helping my staff so efficiently. We are not out of the woods, but grateful that you gave us another chance to start again by buying the business and assets back from the liquidator."
Architectural company
"We approached MWW at a very difficult stage - needing to complete an administration process quickly. It was an incredibly stressful time for us in general and Jo, Tony, Bethan and the team at MWW were a real pleasure to work with. They quickly jumped in to support us, gave us really clear and concise advice and helped mobilise the process really quickly to deliver a positive outcome via a pre-pack administration. We couldn't be more grateful for the support we received and I would have no hesitation in recommending MWW."
Company Director
"We have worked with McTear Williams & Wood in a number of turnaround situations. We rank their integrity and professionalism highly and really value their active desire to make businesses succeed wherever possible. Their attitude in working with other professional advisors to achieve this end is highly commendable."
Corporate Finance Accountant
"I am always impressed with the speed with which McTear Williams & Wood respond to a crisis (and with insolvency matters, it usually is a crisis). Our clients have received invaluable, practical, down-to-earth advice which has helped to steer them towards the right solutions to their problems. I am confident to recommend McTear Williams & Wood to our clients in any insolvency situation."
Insolvency Advice forAccountancy Firm Partner
"It was a tough decision to make but it had to be faced, I made the call and McTear Williams & Wood were very, very helpful the whole time. They helped us to explore all the possibilities to find any way forward and they helped us identify that liquidation was the best option for the business. Certainly McTear Williams & Wood made the process quite straight forward for us there was lots of help and lots of contact with them throughout the whole process."
Barry GodfreyManaging Director, Godfrey DIY Supermarkets
"Having traded successfully for over 20 years until recently it was devastating when we realised that our company would have to go into administration. But as we began to work with the team at McTear Williams & Wood believe it or not we wished we had been introduced to them at least six months sooner. That would have avoided months of heartache and the business would have been in a stronger position. As it was McTear Williams & Wood guided us through a pre-pack which saved the profitable stores and the restructured business is now growing again."
Managing Director, National Retailer
"After meeting with Andrew McTear we both felt we had met someone who we could put our trust in and who would leave no stones unturned to help us rescue our business. We had been given two insolvency practitioner names and the other firm just wanted to put the company into administration. As things turned out that would have left any purchaser of the business and assets with significant employee liabilities which would have killed the deal and all the jobs would have been lost."
Finance Director, Joinery Company
"I am aware of the sterling work carried out by this committee and of your role on it. I would like to take this opportunity to thank you for your valued contribution over the last two or so years. Your endeavours have made a significant contribution to the success of the committee in setting up and reviewing the Straightforward Consumer IVA Protocol and I and my Policy colleagues are grateful for the considerable time you have spent in this role."
IVA Standing Committee Member
"McTear Williams & Wood were called in to help our company when it went into Administration. They took early decisive action to reduce costs, maintain the loyalty of customers and key staff and find a viable way forward for our company. They conducted themselves at all times with the utmost professionalism, integrity and objectivity. I found them approachable, well-connected, responsive and always value-adding. McTear Williams & Wood have been instrumental in turning around the company's fortunes."
CEO, Manufacturing Business
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Directors' guide

Business rescue & insolvency specialists
What you need to know
A brief guide to insolvency
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