Company Voluntary Arrangement

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.

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Formal agreement with creditors
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Provides you with extra time to get on top of debt
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Allows business to continue as a viable operation

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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.

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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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How Can FD Business Rescue Help?

The best thing to do in these matters is to get in touch with us as soon as you can. That way, you can have all the data you need to make an informed decision. Our experienced advisers will be there every step of the way with the best solution for you.
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CASE STUDIES

See how we’ve helped
other business owners

Our company was founded in 1902, so we have many years of experience helping business owners turn-around their companies, or where required, close them down efficiently and for maximum returns. See below just a few stories, and what our clients say about the service we provided.
Drawer tab saying Liquidation on it, business advice

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

Read More >
Handshake

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

Read More >

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

Read More >
Drawer tab saying Liquidation on it, business advice

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

Read More >
Handshake

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

Read More >

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

Read More >
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