CVA's (Company Voluntary Arrangement)
CVA's allow your company to settle or compromise debts.
CVA's are flexible procedures ideal for any company facing short term cash flow problems. In most cases the directors remain in control of the business. CVA's are generally advantageous to your creditors, since they will receive a much better return than if the company had ceased trading.
What is a CVA?
This is an alternative to liquidation allowing the company to continue and maximising the return to creditors.
Who is included?
- All unsecured creditors, although associated creditors may be asked to stand outside.
- Of creditors that vote, 75% by value would need to support it.
What to do now?
Contact us as soon as possible if you are unable to pay your creditors as they fall due.
The advantages
- Allows Directors to maintain control of the company.
- No further interest accrues. Protects the company from legal action.
- Company assets can be excluded from proposal.
- Set payment period for a maximum of five years.
