A company voluntary arrangement (CVA) is a tool under English insolvency law which allows a company to restructure its financial obligations and is typically used in the context of unsecured debt.
CVAs have come to the fore recently as increasing number of retailers and casual dining restaurants are turning to CVAs to restructure their rental obligations. This is not surprising given that a CVA is a relatively flexible process and usually cheaper to implement than a scheme of arrangement. Neither a CVA nor a scheme of arrangement will fix a fundamentally flawed business, but companies looking at restructuring should be aware of the capabilities of these English law mechanisms.