A Company Voluntary Arrangement (CVA) is a procedure intended to assist in the rescue of a company in financial difficulties. The process allows a company to agree on a payment arrangement with its creditors for some or all of its debts.
The process is voted on by the company’s creditors:
- With creditors, 75% in value are required to vote the arrangement through
- With Shareholders, 50% in value are required to vote the arrangement through
If approved, the payment arrangement is binding to ALL unsecured creditors. If you think that a CVA may be the best option for your business, please contact us.
The CVA Process
- Preparation of the Proposal and statement of affairs (details of the company’s assets and liabilities
- Provision of the Report by the Administrator, and communication with creditors and shareholders of a CVA meeting within 28 days
- Announcement of the CVA meeting to creditors
- Meetings held with Creditors and Shareholders
- Approval of the payment proposal
The CVA mechanism can really work for companies who are experiencing financial difficulty, and may be getting significant dissent from minority unsecured creditors. Talk to us about how we can assist you with this process and the success we have had with other CVA clients.
