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The Company Voluntary Arrangement (CVA) is a deal between the company and its creditors (unsecured, trade and tax) to repay them from future profits (or a deal may be written to sell assets and pay back creditors from the proceeds).
The deal is based on preserving the company, rebuilding sales and profits and paying something back over a period of time to be agreed. Directors remain in control, personal guarantees don't get called in (usually) and it gives the business a fighting chance to survive.
A proposal is drawn up by the directors, or if in liquidation/administration, by the liquidator/administrator.
The proposal is binding on all creditors who had notice and entitled to vote at meeting, if accepted by excess of 75% in value of creditors present and voting
A supervisor is appointed at the meeting of creditors to administer the arrangement. His duties/powers will be set out in the voluntary arrangement
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