CVA Company Voluntary Arrangement

Company Voluntary Arrangement (CVA) Advice to UK Companies

A CVA or company voluntary arrangement is an insolvency procedure for financially troubled companies. We are able to provide detailed advice on; what is a Company Voluntary Arrangement (CVA) is, who can benefit from a Company Voluntary Arrangement (CVA, the Company Voluntary Arrangement (CVA) Procedure, what makes a successful Company Voluntary Arrangement (CVA), the advantages of Company Voluntary Arrangement (CVA), the disadvantages of Company Voluntary Arrangement (CVA). Please call us today or apply for advice online.

What is a Company Voluntary Arrangement (CVA)?

A Company Voluntary Arrangement (CVA) is an insolvency procedure allows a financially troubled company to reach a binding agreement with its creditors about payment of all, or part of, its debts over an agreed period of time.

Who can propose a Company Voluntary Arrangement (CVA)

A Company Voluntary Arrangement (CVA) can be proposed by the directors of the company, the administrators of the company, or the liquidator of the company.

What must be done in preparation to a Company Voluntary Arrangement (CVA)

Before the Company Voluntary Arrangement (CVA) proposal is made, an application can be made to court for a moratorium which prevents creditors from taking action against the company or its property for up to 28 days, although if an administrator is in office the company will already be covered by the moratorium arising from the administration .A Company Voluntary Arrangement (CVA cannot be proposed by creditors or shareholders.

How does a Company Voluntary Arrangement (CVA) get approved?

When the Company Voluntary Arrangement (CVA has been proposed, a nominee (who must be an insolvency practitioner) reports to court on whether a meeting of creditors and shareholders should be held to consider the proposal.

The meeting decides whether to approve the Company Voluntary Arrangement (CVA). If 75% of the creditors agree to the proposal, it is then binding and all creditors who had notice of the meeting and were entitled to vote. All creditors who had notice of the meeting are bound by the terms of the arrangement.

If the meeting of creditors and shareholders approves a Company Voluntary Arrangement (CVA), the nominee (or other insolvency practitioner), becomes the supervisor of the Company Voluntary Arrangement (CVA).

What happens after a Company Voluntary Arrangement (CVA) has been approved.

Once the Company Voluntary Arrangement (CVA) has been carried out, the company's liability to its creditors (who had notice of the meeting of creditors) is cleared. The company can continue trading during the Company Voluntary Arrangement (CVA) and afterwards. A Company Voluntary Arrangement (CVA) can be set up when a company is in liquidation or in an administration, as well as at any other time.

For information on how a CVA Company Voluntary Arrangement can assist in the rescue of a business please call us TODAY or apply for advice online