2.9.3 Voluntary arrangement based on a CVA
Instead of attempting to come to an arrangement with creditors, a society can opt for a voluntary arrangement based on a company voluntary arrangement (CVA). This involves the appointment of a licensed insolvency practitioner who is responsible for developing the arrangement with creditors, securing their support for this arrangement, and administering its implementation. The CVA must be approved by creditors representing at least 75% of the debt. A CVA does not require member approval because it cannot involve a restructuring, amalgamation or transfer of ownership of the society itself. Instead a CVA usually involves scheduled payments to creditors through the insolvency practitioner until these debts are paid off.
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