A Company Voluntary Arrangement (CVA) consists of a deal between the company and its creditors to repay them from future profits and is a deal designed to preserve the company, rebuild sales and profits and pay something back over a period of time to be agreed. The company directors remain in control and personal guarantees do not get called in. A well-structured CVA is a beneficial tool to ensuring the survival of a business.
A successful CVA is based on:
Directors must understand that the creditors’ objectives are paramount when putting together the arrangement.
If the business has a viable future, there is an acceptance of the need for change, the directors are prepared to fight for survival and appropriate funding can be found, then a CVA is an exceptional tool.
An arrangement can be proposed by the directors of the company but, when a company is in liquidation or administration, then the liquidator or administrator can propose the arrangement. However, it can only be proposed if the company is insolvent.
To discuss Company Voluntary Arrangements (CVA) call Phil or one of our other licensed insolvency practitioners on 0333 014 3454. Alternatively, visit one of our local offices or email us: firstname.lastname@example.org
If your business is in trouble - if you are facing creditor debts, HMRC debts, or struggling to meet payroll, then you could be facing liquidation. Can your business be saved? Download our free guide, 'What To Do When You Are Facing Liquidation' now.