Sterling Ford - Insolvency & Bankruptcy Services

   Company Voluntary Arrangement - CVA
Company Voluntary Arrangement - CVA
Company Voluntary Arrangement A Company Voluntary Arramgement or CVA is a popular procedure with directors, who feel their company has a viable future and are prepared to work hard to keep it in business. A CVA can be based on a scheme of arrangement, where contributions of net profit are, for periods of up to 5 years, paid over to the Supervisor, the insolvency practitioner appointed by creditors to supervise and administer the CVA. Alternatively, the CVA can be based on a lump sum composition or a mixture of a lump sum, perhaps from an asset disposal or third party source, together with a regular contribution of net profits. Usually, the greater the lump sum paid at the outset, the shorter the term of the CVA. Company Voluntary Arrangements are legally binding in that the total amount received in dividends by the unsecured creditors would be in full and final settlement of their claims against the company, which have been admitted to rank for distribution in the CVA. Typically, creditors receive between 25% and 100% of the sums due to them. This is dependent upon what the company can afford to repay.
With a Company Voluntary Arrangement in place the directors would retain control of their company, which they continue to trade whilst the amounts owed to the company's unsecured creditors prior to the CVA would be frozen, thereby allowing the directors to concentrate on moving the company forward.
Our charges for preparing CVA proposals start at just £2,000 plus VAT and disbursements.
Click here to see some case studies on our previous Company Voluntary Arrangements.

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