Company Voluntary Arrangement
Company Voluntary Arrangement CVA
A Company Voluntary Arrangement (CVA) provides a popular and realistic alternative to complete company closure for insolvent companies. It is an opportunity for a limited company to buy time to pay back their unsecured creditors over a longer period of time. This will often involve a reduction in the amount of money paid back but is sometimes more then what they would recieve if they entered a liquidation which is why this business rescue tool proves to be popular.
A Company Voluntary Arrangement can only be handled by Licensed Insolvency Practitioners as it is a formal insolvency process and therefore can only be performed by a fully Licensed Insolvency Practitioner. At Insolvency.com we have 4 Insolvency Practitioners who are regulated and Licensed by the IPA (the only specialised insolvency licensing body in the UK)
Key Benefits of a Company Voluntary Arrangement
- Deferral of payments will ease Cash Flow pressure
- The Company continues to trade under the control of the Company Directors
- Court protection can be obtained whilst the CVA proposal is considered by creditors
- Repayment structure of the CVA is flexible
If a company has a viable future but is being dragged back by historic debt leading to pressure of today’s cash flow then a CVA may be a sound solution. The Company Voluntary Arrangement can help restructure a struggling company in order to give it enough room to make a profit with its current clientel.
We’re always keen to make sure that as a Company Director you are clear on all the options available to you. A CVA should always be considered as an option along with other possibilities.
We don’t see it as our place to tell you what to do but to explain how everything works and let you decide on what’s best for your company.
For more information, see our list of CVA Frequently Asked Questions.