How to Enter a Company Voluntary Arrangement (CVA)
We provide guidance and advice to directors considering a Company Voluntary Arrangement.
Call 0207 504 1300 now to proceed with a Company Voluntary Arrangement
What is a Company Voluntary Arrangement?
A Company Voluntary Arrangement (CVA) is a formal contract between an insolvent company and its creditors. They allow companies to continue trading while repaying creditors, usually over a period of 3 to 5 years.
Benefits of a CVA
Entering a CVA gives a company director an opportunity to approach creditors and say:
“We have a good business moving forward. But we've collected some historic debt that we can't service. A proposal is being put together for us to enter an arrangement that allows the company to continue trading while repaying a percentage of what we owe you over the next 5 years.”
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How is a CVA proposal approved?
A group of creditors who are owed at least 75% of the debt must vote in favour of the proposal for a Company Voluntary Arrangement to be approved. They can do this via email, virtual meetings or some other correspondence.
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I&L can provide guidance and counsel as to what's in your best interests, and recommend a commercially-minded insolvency practitioner to facilitate a Company Voluntary Arrangement. Call 020 7504 1300 now for free and confidential advice…