Company Voluntary Arrangement
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FORMAL AGREEMENT TO GIVE YOU TIME
What is a Company Voluntary Arrangement?
A CVA is a Company Voluntary Arrangement, basically a formal agreement between a business and those it owes money to which details how it will repay the debt moving forward (i.e. how much it will repay and over what time period).
A CVA is usually used where the core business is profitable, but it’s had some historic debt (e.g. PAYE, VAT, rent or rates) which it needs time to be able to get on top of. CVAs are often used to give a business a little space to restructure, so it can continue as a viable business into the future.
Formal agreement with creditors
Provides you with extra time to get on top of debt
Allows business to continue as a viable operation
What's the best option for my business?
FAQ
Company Voluntary Arrangement
Directors take the decision to place their company into Creditors’ Voluntary Liquidation, but must obtain a majority vote of 75% of shareholders (by value of shares). A liquidator is appointed and creditors informed of the situation.
The nominated Insolvency Practitioner arranges a meeting of the company’s directors, creditors & shareholders. Following this, the company is then in liquidation. assets are sold and the proceeds distributed to creditors.
The CVA can allow a company breathing space to allow it to recover and continue as a going concern. It is also flexible enough to allow specific debts to be renegotiated such as rent. And if the worst was to happen and the company be liquidated, then you may also be able to claim Director redundancy.
However, whilst a CVA can avoid the serious repercussions of liquidation, they will still affect a company’s credit score. So, it’s advisable to seek advice as soon as possible to see if a CVA is right for you.
Yes, you’ll need to get 75% by value of the voting creditors to agree to the CVA. Our advisors can keep you right on how to maximise the chances of success.
How can a CVA help you and your business?
FD Business Rescue Manager, Rob Hardie gives an introduction to how a CVA can help rescue your business. Get in touch to speak to a qualified advisor, our team would be delighted to help and explore the right options for you.
Download our free guide to see 5 ways to rescue your business that you didn't realise were an option
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Testimonial
“Just wanted to thank French Duncan for the sterling service provided by yourself and your colleagues with regard to my company’s CVL. The process was smooth and swift, with excellent communication which eased a stressful time greatly.” An anonymous company director who recently utilised the
Testimonial
“I had an excellent experience working with French Duncan in managing the liquidation of my company. The team are very experienced and knowledgeable with an excellent understanding of the issues faced by businesses in financial distress. Rob Hardie handled my affairs with professionalism and was
Renewables
This was a great outcome for the directors, the project and creditors. French Duncan’s Restructuring team was approached by directors and shareholders of a small renewables company. The renewables company was in the “build phase” of its development and had ran into difficulties with its
Testimonial
“Just wanted to thank French Duncan for the sterling service provided by yourself and your colleagues with regard to my company’s CVL. The process was smooth and swift, with excellent communication which eased a stressful time greatly.” An anonymous company director who recently utilised the
Testimonial
“I had an excellent experience working with French Duncan in managing the liquidation of my company. The team are very experienced and knowledgeable with an excellent understanding of the issues faced by businesses in financial distress. Rob Hardie handled my affairs with professionalism and was
Renewables
This was a great outcome for the directors, the project and creditors. French Duncan’s Restructuring team was approached by directors and shareholders of a small renewables company. The renewables company was in the “build phase” of its development and had ran into difficulties with its
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