• Voluntary Liquidation
• Creditors Voluntary Liquidation
• Company Liquidation
• Business Debt
• Personal Debt
• Business Bankruptcy
• Business Insolvency
• Sole Trader Insolvency
• Avoid Bankruptcy
• Company Voluntary Arrangements
• Tax Arrears
• Partnerships
• Administration

News

Company Voluntary Arrangements

What is a Company Voluntary Arrangements?

A Company Voluntary Arrangement or C.V.A. is a way in which company, assisted by a Licensed Insolvency Practitioner can help a company to survive through a formal insolvency procedure.

Can a Company Voluntary Arrangements Help Us?

The Company Voluntary Arrangements procedure is extremely flexible. The insolvent company, through its directors, puts forward a proposal to all of its creditors. In practice the Licensed Insolvency Practitioner will draft the Proposal with information being provided by the company’s directors. Most Company Voluntary Arrangements involve some form of restructuring of the company’s business.

A Company Voluntary Arrangements is appropriate for a company that has a strong core business and where there are clearly identifiable reasons for the current insolvency. The company needs to be able to provide a justification as to why it has got into difficulties and more importantly explain what it is going to do to get out of those difficulties. In such cases the company’s creditors are usually keen to support a proposal which will ensure the survival of the business as this means that the company can continue to purchase goods and services from its creditors.

Company Voluntary Arrangements generally ring fence the company’s existing debt up to the date of a creditors meeting. Thereafter those creditors will receive a dividend on that old debt. The source of the funds to provide this dividend can be varied. Usually the company will make monthly contributions to the Licensed Insolvency Practitioner who will act as Supervisor of the Arrangement. In some instances a third party will inject funds into the company to pay a one off dividend to the creditors. At Lines Henry we have used both types of funding to provide a dividend to the C.V.A. creditors. In certain instances the third party has bought the company for a nominal sum and paid monies into a fund for creditors. By doing this the third party acquire a business free of its existing creditors.

If you wish to speak to one of our Partners regarding a Company Voluntary Arrangements please call us on 08081 446611

Need Debt Advice?

Just-Debts is the one stop web site for people with debt problems. Whether you have debt problems, are currently in debt management and looking for an alternative, considering debt consolidation, or an Individual Voluntary Arrangement. Take advantage of our free consultation service.