Company voluntary arrangement (CVA)

CVA is a formal, legally binding arrangement between a company and its creditors, for amounts owed to them, prior to commencing the CVA. It’s appropriate for a Company in financial distress which has a good, underlying and profitable business moving forwards.

In general, a CVA Proposal, a document prepared and circulated to creditors for consideration, allows for a percentage of the historic debt to be paid to creditors from income generated by the Company in the future and during the term of the CVA.

CVAs typically last for between 3-5 years and monthly CVA contributions are paid to a CVA Supervisor, a licensed Insolvency Practitioner, although sometimes one ‘lump sum’ contribution can be paid to settle the compromised sums to creditors.

We will review your company’s financial situation and, if appropriate, help you structure a CVA proposal that will allow your business to pay back a percentage of its debts over an extended period of time. Payments are usually monthly and may continue for several years, relieving the pressure on your cash flow.

Expert insolvency guidance

“Depending on its complexity, a CVA can be less expensive than other insolvency procedures. Because of the intricacies that are frequently present, the decision to use a CVA – and its implementation – should only be handled by experienced insolvency practitioners.”

Daniel Richardson, Partner – CG&Co

For independent and expert guidance on a CVA, call CG&Co today on
0161 358 0210. Alternatively, click here.