What is the role of an insolvency practitioner in a CVA?

The insolvency practitioner (IP) plays a crucial role in the CVA process, acting first as a nominee and later as a supervisor. As nominee, the IP reviews the company’s financial position and drafts the CVA proposal in consultation with the directors. This includes preparing cashflow forecasts, repayment schedules, and explaining how creditors’ interests will be safeguarded. Once the proposal is filed with the court and circulated, the IP organises the creditor vote. If the CVA is approved, the IP becomes the supervisor, monitoring compliance and distributing payments to creditors. The supervisor ensures that the company adheres to the terms of the arrangement and reports progress to creditors regularly. The IP acts as an independent professional, balancing the needs of the company with the rights of creditors. Without their involvement, the CVA could not proceed legally. Their presence provides assurance that the process is fair, transparent, and conducted according to UK insolvency law.