Partnership Voluntary Arrangement

PVA – Solvent Business

Partnership: (alliance; fellowship; association)
Voluntary: (freely; willingly; intentionally; deliberate)
Arrangement: (orchestration; order; method; sequence)

An ‘Insolvency Practitioner’ (IP) is appointed as ‘supervisor’ of a scheme whereby the partners/partnership proposes repayment terms to its creditors, in part of in full, of their debts owed over a period of time. Once the scheme is agree and all creditors have been formally notified, every historic creditor(s) due payment of debts owed, are bound by the scheme, thereby providing preservation of the partnership business and assets to the advantage of all concerned.
 

Key Issues:

• There must be a Core business to rescue.
• The Partners remain in control and must act responsibly for the survival of the partnership.
• A ‘supervisor’ does not have the same powers as that of a ‘receiver/liquidator’ the partnership is monitored and the supervisor’s duties are to administer the scheme through to its completion. Failure of such a scheme could pre-empt Liquidation of the Partnership and Bankruptcy of the Partners.