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A Company Voluntary Arrangement is a formal corporate turnaround procedure that allows a company to ring-fence historic debt and reach agreement with its creditors as to how that debt is to be repaid in full or in part. It provides legal protection to the company and leaves the directors in charge of all company operations and decision making.

A Pre pack Sale is the sale of all or substantially all of the business and assets of a company that has previously entered into Administration. The sale quite often takes place on the first day of the Administration as the marketing of the business and negotiation of the sale terms has taken place prior to the appointment of the Administrator. Hence the “pre-packaged” nature of the transaction. A Pre pack is sometimes known as an “accelerated M & A” process.

An MVL is a formal legal process governed by the Insolvency Act 1986 and The Insolvency Rules 2016 for companies that are incorporated in England and Wales. The legislation relating to companies incorporated in Scotland and Northern Ireland is very similar to the law in England and Wales.

When a company goes into liquidation there is a formal legal process governed by the Insolvency Act 1986 and The Insolvency Rules 2016 for companies that are incorporated in England and Wales. The legislation relating to companies incorporated in Scotland and Northern Ireland is very similar to the law in England and Wales.