When businesses are fundamentally viable, but perhaps under pressure to repay debts in a short space of time, they can seek a Company Voluntary Arrangement (CVA) with their creditors.
This enables them to continue trading while also agreeing to pay all, or part, of their debts over a fixed period of time – usually between one and five years. An insolvency practitioner would manage the process, distributing the money to the creditors.
From the point of view of the creditors, it can usually return to them more money than they would be likely to receive as a result of any other form of insolvency procedure. It also gives the company a real fighting chance of staying in business and safeguarding jobs. The directors and owners can also stay in control of the business.
How we can help
CVAs are a form of compromise agreement, so legal advice and support from an experienced law firm such as Else Solicitors is vital. Our specialist team of insolvency experts can act on behalf of directors and shareholders or creditors or insolvency practitioners as required.
We have successfully helped many struggling companies to look at their options and, if it has been appropriate, we have helped them to enter into a company voluntary arrangement.
To speak to a member of the banking and finance team in relation to company voluntary agreements, please call 01283 526200, alternatively you can send us a message and we will get in touch at a time that suits you.