If your company is struggling to pay debts to its creditors but you believe that it has the potential to be a viable and profitable business again in the future, a Company Voluntary Arrangement (“CVA”) could provide an achievable company rescue solution.
A Company Voluntary Arrangement is a legal agreement between an insolvent company and its creditors, administered by a qualified insolvency practitioner. The CVA process allows an insolvent company to negotiate payment terms with its creditors for all or part of the debt over a period of time. CVAs work both for the company and its creditors.
They give the company and its directors space to breathe and the opportunity to work their way through their financial troubles; and they allow creditors to claim back money that they are owed.
As qualified and experienced insolvency practitioners, we can assess your company’s financial situation and determine whether a Company Voluntary Arrangement could be an effective solution to your company debt problems. We then act on your behalf and negotiate with your creditors to come to an agreement on payment terms and establish a Company Voluntary Arrangement.
Whilst a CVA may sound like the perfect solution to company debt problems, it is important to understand that they are not a viable solution for all insolvent companies. There are some criteria which must be met before a CVA can be considered:
The company must have a realistic prospect of recovery and becoming viable again in the future.
The company should have projected cash flow forecasts that indicate there will be enough capital to cover the agreed upon repayment amounts.
The process for setting up a Company Voluntary Arrangement (CVA) begins with contacting an insolvency practitioner. So if your company is going through financial difficulties and you think that your company may be eligible for a CVA, get in touch with us ASAP via email, telephone or online chat and we can get the process started.