Company voluntary arrangement (CVA)

Does your company have a future?

• A CVA is a process for a Company where the directors perceive it to have a viable future. In the arrangement, you offer to pay a certain sum to your creditors over a fixed period, and this proposal is intended to provide the platform for the ongoing running of your business.
• A CVA allows you as Director to remain in control of your business and allows time for you to review all of your business processes. We would be appointed to monitor the ongoing performance of the company to ensure that the proposal to creditors is adhered to.
• CVA's tend to give creditors a better return than Administration or Liquidation as trading profits can be included in the arrangement. They are paid over to the Supervisor to pay out to the creditors over the term of the Arrangement, typically 3 years.
• CVAs are very flexible so you can include or exclude whatever you think necessary, but you have to remember that the offer to the creditors has to be acceptable to them. If it isn't appealing, or they deem that it is not in their interests, the creditors can reject the proposal. At this point, further advice would be necessary.