Corporate Recovery and Insolvency terminology

Partnership Voluntary Arrangements (“PVA”)

PVA’s are available to partnership in the same way that CVA’s are to companies.

The advantage to the partners is that they may be able to remain in business and may avoid the stigma of bankruptcy. The advantage to the creditors is that they generally receive a higher dividend than in bankruptcy. An IVA may also be appropriate for individual members of the partnership and indeed all partners can enter into separate Voluntary Arrangements with their creditors.