Company Voluntary Arrangement (CVA)
Why Use a CVA?
The CVA procedure allows the directors to retain control, to trade out of their current financial problems, ensures the business can return to profitability in a legally binding and commercially structured binding agreement with their creditors. The company can agree with its creditors a viable long-term plan, typically three to five years. During the process the company will pay its creditors a proportion or all of its debts over a specified period.
The company is overseen by a licensed insolvency practitioner known as a supervisor, who will decide on the payment terms based on cautious, viable and realistic forecasts. Where the company proposes to make monthly contributions from income, it is important that this is affordable. If your business is potentially viable but struggling with cash flow problems or facing threats from creditors, a CVA could help bring an end to the creditor pressure and revive your company.
If you would like to speak to one our partners to arrange a free initial consultation, please contact Paul Davis – Head of Corporate Recovery and Insolvency