A Company Voluntary Arrangement [CVA] is a formal corporate turnaround procedure that allows a company to ring-fence historic debt and reach agreement with its creditors as to how that debt is to be repaid in full or in part. It provides legal protection to the company and leaves the directors in charge of all company operations and decision making.
Expert Advice
In addition to providing directors with a free confidential consultation with one of our licensed insolvency practitioners at a convenient time and location, we will assist in the preparation of the CVA Proposals [i.e. the Business Plan] that has to be put to the creditors in order to get their agreement to the proposed turnaround strategy. We will help prepare the required financial forecasts to be included in the Proposals and where necessary speak and sometimes meet with the company’s bankers and key creditors.
In conclusion
Directors and shareholders who truly believe in their company’s prospects and can back that belief up with solid business assumptions can keep full control of the company’s affairs by utilising this debtor-in-possession formal procedure. A CVA, undertaken in a true spirit of openness and fair-dealing will be of benefit to all parties that have a stake in the company’s future success.
For more information visit our Company Voluntary Arrangement [CVA] page.
