— CORPORATE RECOVERY AND INSOLVENCY
Corporate Voluntary Agreement
A Corporate Voluntary Arrangement (CVA) is a legally binding arrangement between a company and its creditors to pay a debt, either in full or a percentage of the total, over an agreed period of time. If problems with cash flow have created mounting pressure on an otherwise viable company, a CVA could be a practical solution for the company /as well as its creditors.
The key benefits of a CVA are that:
- it enables the company to continue in business with the objective of improving the creditors’ standing.
- it eases any pressure on cash flow.
- it allows greater flexibility for ensuring that the returns to creditors are maximised.
- it halts any court actions and winding-up procedures.
- it allows directors to remain within the company.
The CVA is approved with the support of the company’s members and creditors. All of the company’s current liabilities are frozen as soon as the CVA is in place, therefore, enforcement action by pre-CVA creditors cannot be taken.
How can we Help
- Advise on the suitability of a CVA
- Help maintain the collaboration of secured creditors
- Manage all relevant aspects of a CVA from start to finish
It will be our pleasure to have a personalised consultation with you, so feel free to contact us.
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