An Overview of Company Voluntary Arrangements in CAMA 2020

Abstract

One of the notable provisions in the Companies and Allied Matters Act, 2020 (CAMA 2020) is the Company Voluntary Arrangements (CVA). The CVA is modeled after the CVA in the United Kingdom (UK) Insolvency Act. In England, CVAs have been used in the debt restructuring of notable firms including Pizza Express (2020), House of Fraser (2018), Byron Burger (2018), Mothercare (2018), Carpetright (2018), Prezzo (2018), Toys ‘R’ Us (2017), Fitness First (2012), Travelodge (2012), JJB Sports (2009, 2011), Blacks Leisure (2009), Focus DIY (2009) etc. Many English CVAs have been "landlord-only" CVAs. These involve compromising substantial long-term leasehold liabilities, without interfering with other unsecured claims.

Keywords: insolvency, bankruptcy, company voluntary arrangement, debtor, creditor, loan, finance, cama 20, nigeria20