Company Voluntary Arrangement (CVA)
When a company is insolvent but has an underlying profitable business, it may be appropriate for a director to seek the agreement of creditors to a Company Voluntary Arrangement (CVA). This is a legally binding agreement that enables repayment of its liabilities, in full or in part so that a business can continue trading under the control of the existing management team.
If you’re looking for more information about a CVA, contact one of our experienced team members at Restart BTi.
What is a Company Voluntary Arrangement?
A CVA is a legally binding contract between a business and its creditors to repay its liabilities whilst the business continues to trade. A Proposal for a CVA is drafted by the Insolvency Practitioner and is sent to all known creditors for their approval. If 75% of creditors by value vote in favour, the proposals are approved. Once agreed, a business is able to continue to trade subject to the terms of the Proposal.
It is important to note that if that business does not comply with the terms of the Proposal, the CVA may terminate and there is a risk that it may go into liquidation.
Is my business eligible for a CVA?
As with any agreement, a certain criteria must be met. To be considered for a CVA, your business must:
- Be insolvent.
- Have an appointed Insolvency Practitioner willing to act as Nominee
- Must provide a realistic and achievable rescue plan and be able to demonstrate that the company maintains its ongoing liabilities during the duration of the CVA .
How can Restart BTi help with your Company Voluntary Arrangement?
A CVA can only be proposed with the involvement of a licensed insolvency practitioner Here at Restart BTi, our experienced team works with you to make sure that you are given the right advice and that a CVA is the correct process for the Company. We endeavour to ensure that the procedure is concluded as quickly and as pain free as possible.
We offer a service that includes a free initial consultation, expert guidance and support, confidentiality, and a fully licensed practitioner that will support and stay with you throughout the full process. To get in contact and receive your free consultation, simply fill out the short form below.
Menu
Newsletter Sign Up
Restart BTi
Suite 42 Dunston House
Dunston Road
Chesterfield
Derbyshire
S41 9QD
- 01246 959 388
- Fax: 03333 444 993
- Email: enquiries@restartbti.co.uk
Restart BTi is the trading name of Restart Business Turnaround Insolvency Limited, a limited company registered in England and Wales no: 11517419
Registered Office: Suite 42 Dunston House, Dunston Road, Chesterfield S41 9QD
Cookie Policy | Privacy Policy ! Vulnerable Person Policy | Complaints Procedure