Company Voluntary Arrangement (CVA)
When a company cannot afford to pay its debts, a CVA is a powerful and flexible way to rescue the business. Using a CVA, a repayment plan is agreed with the creditors, allowing the company to carry on trading and agreeing a more favourable outcome for creditors than if the company was simply wound up.
A CVA usually deals with all the company’s unsecured creditors – in other words, it will include amounts owing to trade creditors, unpaid business rates and tax debts due to HM Revenue and Customs. Even if a ‘Time to Pay’ agreement has previously been refused by HMRC, a CVA may still be agreed.
As a CVA is a legally-binding agreement, there is a strict procedure which must be followed and it does depend on the agreement of a certain majority of the creditors. As licensed practitioners, we have the expertise and experience to guide you through the process from start to finish, from helping you to determine whether a CVA is the right option for your company, through to implementing the arrangement.
If you would like further information on Company Voluntary Arrangements call today on 01709 331300.