Benefits of a CVA for directors and business owners

Directors and business owners can use a CVA to expand their business

A company voluntary arrangement (CVA) offers many benefits if you have a profitable company that’s been devastated by the Covid-19 pandemic. A CVA is a contract that allows an insolvent company to continue trading while repaying creditors over time. The procedure is great for a company that requires substantial debt to be excused so trade and cash…

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Tips for creditors in administration

Creditors must move swiftly and request ameeting of creditors

Many business owners and directors will return after lockdown to discover they’ve become creditors in a statutory insolvency procedure, most likely administration. This is because administration is an attractive solution for business owners looking to avoid incurring further debts with suppliers following Covid-19. The procedure is a rescue mechanism for asset-rich but insolvent companies and…

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Benefits of a pre pack administration

Pre-pack administrations help directors restructure their businesses

Expect an increase in pre-pack administrations over the next 6 months as panic-stricken company directors consider their restructuring options post lockdown. Depending on the circumstances, a pre-pack administration can offer huge benefits to the director of a profitable, but insolvent company. The procedure is a useful restructuring mechanism that helps business owners place insolvent companies…

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Understanding your insolvency practitioner (IP)

Seek advice from an independent professional when considering any insolvency procedure

When attempting to restructure or liquidate a company you will need a strategy designed for your specific requirements and circumstance. Lawyers are expensive and a licensed insolvency practitioner (IP) may not be able to provide you with impartial advice. In these situations, it’s always best to seek the support and guidance of an independent professional…

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How to make the most of creditors’ meetings

Creditors must be proactive in creditors' meetings

Most creditors assume they’ve lost all their money when a customer enters a formal insolvency procedure. That’s because few creditors understand how much they can influence an insolvency procedure by actively engaging at Creditors’ Meetings. Creditors’ Meetings usually take place between 1 and 10 weeks after a company declares insolvency. At this meeting, creditors are:…

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Restructuring with a CVA or administration

Post lockdown, many directors will restructure their companies using insolvency procedures, most likely administration or a company voluntary arrangement (CVA). The Government recently introduced a moratorium facility, which offers 20 to 40 days of protection from creditors. But a director who opts for this will undoubtedly find themselves considering a CVA or administration once the…

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