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Can A Company Enter A CVA When It’s In Administration?

The quick answer

Yes. A limited company can enter into a Creditors Voluntary Arrangement (“CVA”) when it is in Administration as a means of exit from Administration. 

In more detail

Administration is often used as a procedure to protect a company whilst a solution is sought or it is used to give time to get a better return to creditors. In some cases, the exit from Administration will be a CVA. The CVA is proposed to shareholders and creditors by the Administrator (usually with the help of the directors) and if the CVA is approved the control of the company passes back to the directors.

The other routes of exit from Administration are; dissolution of the company, liquidation or a hand back of the company to the directors if it is now solvent.

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If you would like advice about your options and whether you are eligible for a CVA please contact me.


If you need insolvency advice the earlier you talk to someone like us the better as you will have more options. We can help, contact us today.
We have just worked with Kirks to complete the closure of our company. Everything went smoothly and professionally. I would recommend this firm and the staff who were very very helpful and quickly finalised everything. Thank you Kirks.
Carol Hill

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David Kirk

Licensed Insolvency Practitioner