Cash is King

Company Voluntary Arrangement

Overview

A Company Voluntary Arrangement, or CVA as it is known, is a formal alternative for company's wishing to avoid liquidation.

It is a contractual arrangement setup by an Insolvency Practitioner between a company and its creditors. An arrangement lasts for a fixed term and ultimately results in debt write off on successful completion.

A CVA can be as flexible as a company's own circumstances and can be based on surplus profits, release of capital, third party contributions or a combination of all of these.

In most circumstances, once a CVA is approved creditors are unable to charge interest and charges on the balance due to them. This is one of the main advantages of a CVA and helps stem the overall debt owed.

CVA's are becoming an increasing popular tool in rescuing an insolvent company from a terminal insolvency procedure. Recent high profile cases include the rescues of JJB Sports and Portsmouth City Football Club Limited.

For more information about how CVA's work and whether it is a viable option for you, contact us today for free no obligation advice.

CONTACT US NOW FOR FREE, NO OBLIGATION ADVICE

FREE INITIAL MEETING

IMPARTIAL ADVICE GUARANTEED


Interesting Insolvency Statistic

In 2009 there were 726 Company Voluntary Arrangements Approved.


Corporate - Individual - Turnaround