If one party breaches any of the terms of a CVA, the arrangement itself should include an outline of what should happen in this event. For some CVAs, it will mean that the agreement is essentially terminated and another solution is required for the company and the creditors. For others, a breach might mean that a specific action will be triggered, such as moving to put the business into administration or to petition for winding up.

The CVA may include provision of an opportunity for the breach to be resolved without the arrangement failing automatically. For example, if the business has missed a CVA payment, they may be given a set period in which to settle this.

It's essential before entering into a CVA that it's clear what will happen in the event of a breach and there may be different actions triggered, depending on the nature of the breach itself. These may be categorised as minor or major breaches.

We can offer specialist advice whether you are the business involved in the CVA or are the creditors. Our experienced team will ensure that you have all the accurate information you need to make decisions about what to do next and the actions that are in your best interests.

We always aim to achieve the best possible outcome for every client, helping to advocate for you and offering support at every stage of the journey.