Son of Powerhouse

Where a tenant company is facing potential insolvency, an increasingly common option for seeking to resolve the position is for the company to propose a Company Voluntary Arrangement ("CVA").

A CVA enables companies experiencing financial difficulty to make a proposal to creditors for the restructuring of the debtor's business or for the rescheduling (and usually reduction) of the debtor's unsecured liabilities. Once the arrangement is approved by more than 75% (in value) of the unsecured creditors, the debtor's liabilities and obligations to those creditors are substituted by the liabilities and obligations provided for in the CVA proposal itself.