Company Voluntary Arrangement

What is a Company Voluntary Arrangement (CVA)

This happens if your company becomes insolvent and you come to an arrangement with your creditors to delay or negotiate a payment arrangement of your debts. You can adapt a CVA to meet the needs of your business, enabling it to keep trading whilst paying off the debts in a way that’s affordable.

A CVA can provide the perfect solution if your company is fundamentally sound but is undergoing short-term cash flow problems. It gives a buffer to your company, giving it time and legal protection from your creditors to organise its finances.  Creditors are inclined to support a CVA where it’s clear that this will achieve a better outcome than liquidation.

How do we approach our role?

Once we’ve helped you and your fellow directors to compile a proposal, you would invite us to act as your ‘nominee’. We’d then take the following steps -

• Invite creditors to consider your proposal, which they will either approve, modify or reject.
• Be responsible for overseeing and carrying out the arrangement - receiving the incoming payments and distributing them to the creditors. If your company defaults on the payments, then we would have to consider a winding-up order.

Throughout the process, you and your fellow directors would be in charge of the day-to-day running of the company.