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.
Trading Administration
A rarer but useful form is a trading administration where the company continues to operate and trade while the administrator looks to sell it.
Find Out MorePartnership Voluntary Arrangement (PVA)
In practice, a Partnership Voluntary Administration (PVA) is virtually identical to a Company Voluntary Administration (CVA) with the differences being those specifically related to the different structure of partnerships.
Find Out MorePre-Pack Administration
There’s nothing new about Pre-Pack — it’s just a more efficient and effective administration procedure for viable companies.
Find Out MoreGet Expert Advice
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