Partnership Voluntary Arrangement (PVA)

A Partnership Voluntary Arrangement has a similar structure to a Company Voluntary Arrangement but is specifically designed for partnerships.

When a partnership is insolvent but has an underlying profitable business, it may be appropriate for the partners to seek the agreement of creditors to a Partnership Voluntary Arrangement.

This is a legally binding agreement that enables repayment of its liabilities, in full or in part.  The Proposal for a Partnership Voluntary Arrangement can take any form, it is usually by way of contributions from future profits but can include a sale of assets, third party funds or any combination.

Creditors consider the Proposal for a Partnership Voluntary Arrangement at a decision procedure.  In order for it to be approved, 75% of voting creditors need to approve it.  If the majority is reached, those voting against it would be bound by the terms of the Proposal.

As long as the Partnership adheres to the terms of the Proposal, the Partnership Voluntary Arrangement will be concluded successfully, and the remaining debts will be written off.  At all times, the day to day running of the Partnership remains with the partners.