On 11th June, the House of Commons Library published a briefing paper that provides a detailed overview of the Company Voluntary Arrangement (CVA) procedure. A CVA enables a viable company in financial difficulty to enter into a legally binding agreement with its unsecured creditors in which the company’s debts are compromised. The company’s directors, an administrator or a liquidator may make a proposal for a CVA which is then put before a meeting of creditors and shareholders for their approval. While an agreement is being pursued, the existing management stays in place. It is described as a relatively simple procedure with minimum court involvement. The paper also provides a summary of recent Government consultation papers and a report commissioned by R3 (the insolvency trade body) on the reasons for the limited success of CVA.