For instance, in a CVA the proposal would be drafted by directors of the company whereas in a PVA it can be done by partnership members even if they aren’t directors.
It’s important that partners only agree to a PVA if the partnership is a viable business or where it has assets that could be realised to raise short term capital or to otherwise improve cash flow.
A PVA can also be used to reclaim any money owed through the business partnership. A specific proposal can be made that would allow the partnership to keep trading so it can repay the relevant partner either from assets or future profits.
In the case of any disputes, a PVA doesn’t provide any individual protection for other partners (unlike an Individual Voluntary Agreement (IVA) ) . It’s complicated so the best thing to do is contact us and we can help plot a way through what can become a tangled path.
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