Guiding your business through a Company Voluntary Arrangement (CVA)

Our professional team will help you throughout a Company Voluntary Arrangement ensuring the best possible outcome for your business.

What is a Company Voluntary Arrangement?

A Company Voluntary Arrangement (more commonly known as a CVA) provides a company with the ability to negotiate a ‘deal’ with its creditors. The benefits of a Company Voluntary Arrangement include:

Negotiating a debt repayment plan, allowing the company protection against any actions to recover debts

Paying creditors either in full or in part, over an agreed period of time

Allows a company to use future profits to pay historical debts

Offers the company the opportunity of renegotiating terms with its suppliers, contract employers etc.

How does a Company Voluntary Arrangement work?

A CVA is a binding agreement between a company and its creditors. The agreement, known as a Proposal, is flexible and may involve delayed or reduced payments over a set period of time or allow for the disposal of assets to free up funds.

A proposal will be presented to creditors to approve. Once approved, the CVA will be overseen by a ‘Supervisor’ (Licensed Insolvency Practitioner) who will ensure that the terms of the agreement are adhered to.

If the company fails to satisfy the terms of the arrangement i.e. by being unable to keep up with the monthly payments, then the CVA will be terminated. If a CVA is terminated, it may lead to the company entering into a subsequent insolvency process such as Liquidation.

If the CVA is successful, in that creditors are paid what they were promised, or if the Supervisor is satisfied that the Company Voluntary Arrangement has fulfilled its aims, the CVA will be complete.

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If you think your company would benefit from a CVA, contact us to find out more

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