Liquid Your Company

CVA’s

Company Voluntary Arrangement

There is legislation that enables a company to make a private arrangement with all its unsecured creditors. The CVA (Company Voluntary Arrangement) procedure was introduced by the Insolvency Act 1986 IA86 and is simply a formal mechanism which permits a company, which has debt problems, to reach a compromise with its creditors on the repayment of its debt.

Imagine if your company could

Freeze the companys debt and any interest charges

Repay the debt in affordable monthly installments

Prevent creditors from taking further action against your company

Write off a proportion of the companys debts with creditors consent

The CVA can be tailored to suit the companys and creditors needs. It could involve a five year payment plan or a full and final settlement in the form of a lump sum to creditors or a combination of the two.

The CVA avoids the need for liquidation, can save jobs and investments. A further advantage is that the Supervisor is not required to investigate the directors conduct nor submit reports to the Dti as in liquidation. However, if the directors conduct has been severely lacking, the Supervisor will need to advise creditors of this and this could effect creditors desire to support the CVA.

If you think that a CVA may suit your situation, give me a call now on 0800 533 5370