Company Voluntary Arrangement (CVA)
If your company is currently struggling with cash flow, a CVA or Company Voluntary Arrangement could allow you to continue trading, without the stigma or costs associated with company liquidation. It can ease the financial situation in the short term to medium term, ensuring your business can survive in the long term. A CVA can also allow you to write off many company debts, allowing you to take your company forward, leaving behind your cash flow crisis and the prospect of court action from creditors. All you have to do is act now and call us, so we can guide your company out of debt and through the CVA process.
What is a CVA?
A CVA or Company Voluntary Arrangement is, simply, a binding agreement between a company in financial trouble and its creditors. It was introduced by government legislation in 1986 and allows a company to pay back its debt over an agreed period of time. A CVA offers a viable alternative to liquidation and allowing a company to write off a proportion of its debts and repay the rest through affordable monthly instalments.
How does it work?
It allows interest charges to be frozen, prevents creditors from taking further action against your company, stops pressure from HMRC , saving jobs, assets and investments. With our help, a CVA can be entirely tailored to the needs of your company to ensure you have the best solution to resolve your debt problem. Call us now to find out how a CVA could guarantee your company's future.
Next Steps: The sooner you take action, the sooner your company can start on the road to recovery. We will outline the maximum number of options available to your company to help overcome your debt problems. Our expert advisors will digest every aspect of your situation, quickly come to a full understanding of your business problems and advise you on the best solution open you. We are here to help you, not your creditors. We guarantee to offer a professional service and impartial advice, so your company can face a debt-free future. If a CVA is the best option for your business, our trained insolvency experts will immediately make an appointment to meet with you at a mutually convenient time and location. This meeting is free of charge, with the objective being to gather further details on the circumstances surrounding your business problems and talk you through the next steps. Call now to set the train in motion.
CVA Proposal: Once the CVA Moratorium is in place, your company will be protected from any legal action and pressure from creditors. As soon as we are instructed, an insolvency expert from Insolvent Solutions can start working with you on drafting the CVA proposal. This will include details of your company forecast, a business plan, a statement of affairs, creditor liaison and information on how much you can afford to pay each month. The proposal will then be reviewed and amended if necessary by the company's directors before being filed at court.
Creditors Meeting: The CVA proposal will then be sent to all creditors, giving them at least fourteen days notice of the CVA creditors meetings. At the meeting, creditors or their elected representatives’ vote on the proposal and a majority vote of 75% in favour is needed for the proposal to be passed. The approved CVA arrangement then binds every party who had notice of the meeting, regardless of whether or not they were present or represented at the meeting.
The CVA Begins: From this point, you and your company are required to make the agreed monthly payments as detailed in the CVA proposal. With the help of our professional insolvency experts, the CVA will be structured in a way to give your company the best chance at making these payments and going forward, debt-free. These payments must be made in order to prevent any further legal action being taken against the company and failure to make payments usually leads to liquidation, although changes and reductions can be made at a later date if necessary.
The CVA Ends: Once the agreed period of the CVA has been completed and all the payments made, the company is no longer in a CVA state and is considered legally debt-free. Any remaining unsecured debt is written off and the directors can continue running the company, knowing that jobs, assets and investments are secure.
Why should I do it?
There are many advantages to a CVA for creditors, company directors and shareholders. A CVA avoids the stigma and costs associated with liquidation and gives a company another chance at a profitable and viable future. It is largely supported by governments, banks and large creditors so your business gets the help it needs to survive. A CVA allows your company to write off a large proportion of its debt and repay the rest with one monthly affordable instalment that is set by you. It is legally binding, stops any further court action, creditor pressure and is a private matter that will avoid any negative publicity. A CVA stops interest and charges.
