Rescue Your Company
A Company Voluntary Arrangement (CVA) is a formal insolvency process agreed between a company and its creditors where a proportion of debts are often written off and the company agrees to pay back a lower proportion of the remaining debt in regular monthly instalments. It’s a way for a company to remain trading and restructure itself to hopefully come out stronger and more profitable at the end of the process.
A CVA is a legal agreement for the reorganisation of a company’s debts. If your company is insolvent, you could potentially look to restructure its debts by proposing a CVA.
As you would look to only offer what you could afford over an agreed period, this could mean that a percentage of your debts would be written off. Furthermore, interest and charges would be frozen once the CVA was accepted.
As it’s a formal insolvency process, you’d need to work with an insolvency practice to organise this. From our side, we’d first ascertain whether a CVA was viable, and then work with you to draft proposals to send to creditors.
Your creditors would then vote on the proposals, and as long as over 75% in value voted in favour, the CVA would be accepted and would be binding on all other unsecured creditors.
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