Company Voluntary Arrangement (CVA) - FAQs for landlords
|What is a CVA?||
|What is the process?||
|What are the main considerations for landlords when reviewing the CVA proposal?||
|How is the CVA passed and what happens if I want to object?||
For the CVA to be approved, it requires consent of 75% of creditors (by value) voting at any meeting.
Should a landlord wish to challenge the CVA, it will have 28 days to do so from the date it is approved, but only on specific grounds.
|What happens if the CVA is passed?||
Once passed, the CVA binds all creditors pursuant to its terms.
The company is still run by its directors.
|What about unpaid rent and termination of the lease?||
The options available to landlords to recover the property or unpaid rent will depend upon the terms of the CVA. See Corporate Insolvency – implications on forfeiture/CRAR and on Rental Liability.
|Practical advice for landlords:||