What is Company Voluntary Arrangement? (CVA)
What is Company Voluntary Arrangement? (CVA)
A Company Voluntary Arrangement (‘CVA’) is a legally binding agreement between the Company and its creditors. It provides a solution by which companies in distress can formulate a plan to pay monies towards their debts over a fixed period of time. The CVA requires the approval of 75% of creditors, by value, who vote, to support the CVA proposals to be accepted. Upon successful conclusion of the CVA any remaining debt is written off and the Company continues to trade as normal outside of the CVA. The CVA is a powerful tool to allow the Company to address issues within the business, cut costs and restructure its trading activities.
Any Company looking to consider a CVA will need to seek the assistance of a Licensed Insolvency Practitioner who can advise Directors on the most appropriate course of action given the particular circumstances. Chamberlain & Co are a firm Licensed Insolvency Practitioners who have over 50 years’ experience in advising Companies in financial distress.
Please feel free to look at our CVA services and if you require any further information regarding our free consultation or any of our other services, give us a call on 0113 242 0808 or e-mail [email protected]