Supporting Businesses Nationally
Company Voluntary Arrangement (CVA)
Is your business facing financial pressure from unpaid creditors that a CVA could help with?
How Opus can support business owners and directors
Our team can explain the options available to help return your business to profitability. We help business owners, directors and all stakeholders navigate their way through the uncertainty that distress brings.
What is a Company Voluntary Arrangement (CVA)?
When a profitable company is struggling to repay its debts due to cash flow problems, a CVA allows it to propose repayments in line with what it can afford, or offer an alternative method to compromise the debts.
It is a contract with creditors which ordinarily suspends interest and sets out how much, and over how long, the company will repay the agreed level of the company’s debt to its creditors. In certain circumstances, this may involve the need for additional funding or another form of restructuring, which we can assist with.
It allows the business to continue trading whilst providing creditors and other stakeholders with a better financial outcome compared to the company entering into liquidation.
Our dedicated team is on hand to provide assistance to Directors of companies in financial difficulties. When a company is insolvent, a Director has a duty to minimise losses to stakeholders. Our senior management are available to talk to you about the problems you and your company face with complete confidentiality.
Who is a Company Voluntary Arrangement (CVA) for?
- Directors can instigate a CVA proposal if it offers a viable and better alternative to Liquidation
- An Insolvency Practitioner acts as an independent Nominee and (if the CVA is accepted) Supervisor of the CVA
- Creditors may approve, modify or reject the proposal. Support of 75% in value of the creditors is required to approve it
- If approved, the CVA proposal takes effect, the company continues to trade and is protected from creditor enforcement action
- A Supervisor oversees compliance with the CVA terms, but plays no active role in the business – directors remain in control
- If the company defaults on the terms of the arrangement, a petition may be issued for the company to be placed into liquidation
Resources and guides
Our latest articles to support decision making for business owners and directors. These provide an overview on what is going on in the market and information about the options available when a company is facing challenges.
For more information on business options, we offer an initial free consultation to review the situation and make recommendations on the best way forward.
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