What is a CVA?
A Company Voluntary Arrangement (CVA) shelters insolvent companies (via a moratorium) from their creditors and allows directors and owners to maintain management control; whilst working towards a company turnaround.
Licensed insolvency practitioners such as ourselves (call 0121 201 1720) will negotiate what is in effect, a payment plan with all creditors, within a month of being appointed for a CVA. The CVA will usually both reduce the debt and spread affordable, payments over 3 to 6 years.
A successful CVA will involve a proposal based on realistic cash-flow, evidence of future viability to maintain the monthly payments of the CVA and will not further impact the position of the creditors moving forward.
Once a CVA has been agreed and approved by the creditors, payments are made to the insolvency practitioner and these contributions will be distributed to the existing creditors. The company continues to trade, safeguarding markets and jobs.
As a result of company restructuring and turnaround, organisations are often better positioned to plan, manage and respond to future changes in their business environment. Cash flow is much improved.
The insolvency practitioner will continue to report to all interested parties about the progress of the CVA at least once every 12 months, until the CVA completes.
Action For: Winding Up Petitions, Receiverships, Distraints,
Walking Possession, Repossession. Call 0121 201 1720 for CVA advice.