Company Voluntary Arrangements: Evaluating Success and Failure

Abstract

The report considers the reasons for the ‘success’ or ‘failure’ of company voluntary arrangements (“CVAs”) and investigates the outcomes where CVAs 'fail'. The frequency of CVAs is reasonably low when compared with alternative corporate Insolvency Act 1986 procedures and it has been commented that CVAs have a high failure rate. The research project aims to identify ‘successful’ and ‘failed’ CVAs and by doing so, identify key characteristics which will in turn allow practical guidance to be provided to insolvency practitioners (“IPs”) and also inform policy recommendations to Government. The report combines evaluation of empirical research concentrating on CVAs in England and Wales, surveys of insolvency practitioners and interviews with stakeholders to identify the characteristics of 'successful' and 'failed' CVAs. This is done in the context of national and international insolvency law developments and consultations including comparative analysis. The report present recommendations for reform to address the issues identified in the research and to improve CVA outcomes.