Company Voluntary Arrangement
Company Voluntary Arrangements (CVAs) are a fairly common device and can be used by an insolvent company to help reduce and reschedule payments to its creditors. A CVA must be approved by creditors before it can be implemented and provides a way for a struggling business to improve its cash flow and work through its difficulties.
A CVA takes place between the company and its creditors and can be tailored to suit specific circumstances. Typically CVAs can last for three to five years. Potentially CVAs can prevent a business from going into administration however there may be other options to explore before considering this route.
Our team has significant experience in assisting directors in the preparation of proposals for CVAs and in acting as supervisors in approved arrangements.