Company Voluntary Arrangements - The Current Position
This new virtual classroom seminar will guide you through the highly topical area of company voluntary arrangements (‘CVAs’), and how both creditors and businesses can address, and perhaps even benefit from, the issues associated with them.
CVAs, while having been a mainstay recovery tool for companies for many years, have come to the fore more than ever during the pandemic. In particular, it has become the ‘go-to’ option for many businesses in the retail and hospitality sectors as a way to reduce liabilities to unsecured creditors, and particularly landlords.
No longer just a vehicle for a struggling business, the CVA has become a highly strategic and tactical tool in a climate where creditors have had many options taken away from them, and businesses are having to take action to survive.
Recent press coverage of the many high street names entering CVAs shows the strength of feeling, particularly from creditors who do not have the voting power to change the outcome. There has been a raft of complex legal challenges to high profile CVAs, which will fundamentally impact the way that they are used going forward.
Insolvency practitioners and lawyers acting for either creditors or the businesses in difficulty will need to understand the core of those challenges, and what they mean for future advice to be given to clients at the coal face.
What You Will Learn
This live and interactive session will cover the following:
- What grounds there are to challenge a CVA and the benefits and risks of doing so
- Is there anything else creditors can do to improve their position?
- The highly contentious question of whether, and to what extent, a CVA can alter proprietary rights and what that means for landlords and the tenant business
- In what ways a CVA can be used strategically - and the impact on the company and its creditors
- A comparison of the CVA model as against the new process introduced by the Corporate and Insolvency Governance Act 2020 including:
- The respective benefits and challenges
- Which model is most appropriate and why?
- Practical considerations
- The new precedent CVA and key content
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.