Company voluntary arrangement

Reorganising

A Company Voluntary Arrangement (CVA) can provide viable businesses with the chance to recover by reorganising or restructuring themselves.

Legally binding agreement

It’s a legally binding agreement between a business and its creditors which clearly states how pre-existing debts will be repaid – usually for a percentage of their value.

Company directors work with their insolvency practitioners to propose the arrangement, which is filed at court, and put before unsecured creditors for approval.

However, until the CVA takes effect a company will be unable to prevent creditors from enforcing their rights unless additional protection is sought from the court.

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.