A Company Voluntary Arrangement (or CVA) is best suited to companies which are profitable, or which have the potential to be viable in the future but are currently experiencing serious cash-flow issues.
Our specialist debt management advisors will determine whether a CVA is the right solution for your business. We will work closely with you and your accountant to establish the true financial circumstances and outlook for the business.
If upon our findings, we believe the company satisfies the requirements of a CVA and you are happy to proceed with this option, we will appoint an Insolvency Practitioner who is commercially aware and best suited to your industry to make a formal agreement amongst your company and all the unsecured creditors it may have whereby the company will agree to repay an agreed sum (typically between 40p and 100p in the £) over the course of 5 years. The remainder of the sum will be written off.
To be successful, the proposed CVA will need 50% of shareholders and 75% of unsecured creditors to vote in favor of the arrangement. Once agree, it will bound all unsecured creditors to the terms within the CVA agreement.
Throughout this process the company will be able to continue trading and the Director will be able to retain control of the management of the company. In the meantime, the IP will act as a Supervisor ensuring that all the terms of the arrangement are continually met.
During the CVA, all interest and penalties will also be frozen to ensure your debt only gets smaller and not any bigger! We will also continue to work with you to ensure the growth and viability of the business moving forward.
For more information call us now on 0121 232 4622 for a free no obligation consultation. We’re on your side!