How did we use Company Voluntary Arrangements (CVAs) to restore two PLCs to the stock market?
We recently advised two London Stock Exchange listed companies – Electric Guitar PLC and Curzon Energy PLC – on restructuring their balance sheets via Company Voluntary Arrangements. Both were facing insolvency, but our specialist input enabled their restoration to solvency and return to trading.
Why was a CVA the right tool for Electric Guitar PLC?
Electric Guitar PLC, listed on AIM, lost its trading subsidiary to liquidation in late 2024. The result was over £1 million in unrecoverable debt. We worked closely with the company’s AIM Nominated Advisor to prepare CVA proposals.
These were approved in March 2025, enabling creditors to swap debt for shares, restoring solvency and allowing the company to be relisted. A reverse takeover is now under consideration.
What led to the CVA at Curzon Energy PLC?
Curzon Energy PLC, listed on the LSE main market, had considered over 100 acquisitions but failed to complete any. With liabilities exceeding £3 million and few assets, the board approached us following a referral from their City-based corporate finance advisors.
In September 2024, creditors and members approved our CVA proposals. The company was renamed Corpus Resources PLC, and the CVA — completed in February 2025 — facilitated the conversion of creditor debt into equity. Coupled with new funding, this allowed the company’s shares to be relisted on the LSE.
What does the Nominee and Supervisor of both CVAs say?
“The Company Voluntary Arrangements for Curzon Energy PLC and Electric Guitar PLC delivered positive outcomes for all parties involved. Without these CVAs, both companies would likely have faced a complete loss of value for creditors and shareholders.
They can now explore reverse takeover opportunities without the burden of historic liabilities. We handled our first listed-company CVA back in 2000, and I’m proud to have helped many PLCs restructure their balance sheets since — creating fresh opportunities for those invested in their future.”
— Antony Batty, Licensed Insolvency Practitioner, Nominee and Supervisor in both cases
Are CVAs a proven route for listed company restructuring?
We pioneered the use of the CVA for listed companies back in 2000. Since then, we’ve advised over 25 main market and AIM listed PLCs, as well as a similar number of Venture Capital Trusts. Our approach has helped protect value for creditors and shareholders — often preserving what would otherwise be lost in liquidation.
Why do insolvent shell companies still hold value?
Listed shell companies may be insolvent, but their listing retains value, given the high cost of achieving a new market admission. These shells can be attractive for reverse takeovers, provided they are first restored to solvency. CVAs enable creditor debt to convert to equity — with additional funds often injected by acquirers — allowing relisting and future transactions.
