CVA approved for not-for-profit social housing provider

The Challenge

A not-for-profit housing association providing supported accommodation to hundreds of vulnerable adults across the UK faced severe financial pressures from unsustainable lease arrangements and regulatory concerns. Without intervention, insolvency was imminent, placing hundreds of vulnerable residents at risk of homelessness and disrupting critical support services.

Our Approach

As traditional insolvency procedures risked service disruption and resident displacement, a restructuring solution that preserved operations whilst addressing the financial challenges was required. We led complex negotiations with the organisation's six largest landlords to agree sustainable lease term restructuring by way of a Company Voluntary Arrangement, making it only the second ever CVA successfully implemented in the social housing sector.

The Outcome

The CVA was approved with overwhelming creditor support, meaning services to residents continued without interruption. Landlords remained engaged as long-term partners and the housing association was preserved as a going concern. The restructured lease terms aligned rental costs with Housing Benefit income and universal credit housing element rates, establishing a viable operating model for continued service delivery.