Company Voluntary Arrangements –
Company Voluntary Arrangements (“CVAs”) are a very effective rescue tool for financially troubled companies that can help them turn their fortunes around and avoid liquidation. They are often viewed as a potential rescue package. On this page we feature an Infographic which summarises the key elements of the CVA process.
We have run many successful Company Voluntary Arrangements, all of which have reduced the pressure and the problems being faced by the companies involved. Click here to see some case studies and testimonials, and here to see some CVA news stories.
(Click on the Infographic below to download a printable version)
Company Voluntary Arrangements – A Possible Solution for Companies Struggling due to Covid 19
The full effect of Covid-19 on companies has yet to be felt, due to the huge levels of Government support. However, many companies are feeling the strain, and ne solution we have in our armoury, as Insolvency Practitioners is a Company Voluntary Arrangement.
We believe CVA’s could enable Companies to survive, by effectively “mothballing” them until better times return.
Two key points are:
- Suppliers and employees will be bound by the CVA, but will get the best prospect of recovering their losses if the Company still exists and can be quickly kick-started once business returns.
- The CVA would seek to repay creditors and employees out of future profits, in the meantime employees can claim arrears of pay, redundancy and other benefits from the Government which will remove the short-term burden on the Company.
These are unprecedented times for businesses and people everywhere.
Contact us for an initial discussion.
Comments are closed.