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.
A CVA 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.
For more information on an IVA, we offer an initial free consultation to review the situation and make recommendations on the best way forward. If we think that an IVA is the best route forward, our specialists can support you at every step of the way through the process. For a no-obligatory chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.
Alternatively, book a convenient time for us to contact you