Company Voluntary Arrangements Compared with Schemes and Restructuring Plans

This chapter sets out the background to the introduction of company voluntary arrangements (CVAs). The chapter also sets out in detail the process for the implementation of a CVA, the key documents required and the statutory and regulatory requirements, including consideration of the impact of the Corporate Insolvency and Governance Act 2020 and the UK court’s jurisdiction criteria following Brexit. The chapter also considers the use of CVAs as opposed to schemes of arrangement and restructuring plans. The chapter summarizes the process to challenge a CVA and examines relevant case law, including the decisions in the Regis case and the Debenhams and New Look CVA challenge cases. The chapter considers and summarizes the recent trend of landlord CVAs and sets out certain issues with the determination and calculation of individual store turnover. In addition, the chapter considers the Virgin Active restructuring plan and opines as to whether restructuring plans will now be used in the place of landlord CVAs.