Company Voluntary Arrangements (CVA)
A flexible approach to business problems, helping you to rebuild your business
Bridgestones has 17 years experience in helping companies like yours with Company Voluntary Arrangements. If you have short-term company issues and think that a Company Voluntary Arrangement may be suitable for you, call us with 100% complete confidentiality to discuss the possibility of a company voluntary arrangement.
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If your company is struggling to pay debts to its creditors but you believe that it has the potential to be a viable and profitable business again in the future, a Company Voluntary Arrangement (CVA) could provide an achievable company rescue solution.
A Company Voluntary Arrangement is a legal agreement between an insolvent company and its creditors, set up by a qualified insolvency practitioner. The CVA process allows an insolvent company to negotiate payment terms with its creditors for all or part of the debt over a period of time. CVAs work both for the insolvent company and its creditors. They give the company and its directors space to breathe and the opportunity to work their way through their financial troubles; and they allow creditors to claim back money that they are owed.
As qualified and experienced insolvency practitioners, we can assess your company’s financial situation and determine whether a Company Voluntary Arrangement could be an effective solution to your company debt problems. We then act on your behalf and negotiate with your creditors to come to an agreement on payment terms and establish a Company Voluntary Arrangement.
What Makes A Company Eligible For A Company Voluntary Arrangement?
Whilst Company Voluntary Arrangements may sound like the perfect solution to company debt problems, it is important to understand that they are not a viable solution for all insolvent companies. There are some criteria which must be met before a CVA can be considered:
- The company must have a realistic prospect of recovery and becoming viable again in the future.
- The company should have projected cash flow forecasts that indicate there will be enough capital to cover the agreed upon repayment amounts.
"We will look at your company’s situation, determine its cash flow and financial projections, and then decide whether a CVA is a realistic company rescue solution for your business."
What Is The Process For Setting Up A Company Voluntary Arrangement?
The process for setting up a Company Voluntary Arrangement (CVA) begins with contacting an insolvency practitioner. So if your company is going through financial difficulties and you think that your company may be eligible for a CVA, get in touch with us ASAP via email, telephone or online chat and we can get the process started.
- Firstly we will assess your company’s circumstances by carrying out a review of the company, its operations and its assets. We will determine its potential cash flow and create financial projections based on this information. We will then be able to advise you on whether a CVA would be a viable company rescue solution for your business.
- Then we will draft a CVA proposal for your creditors, based on what your company will realistically be able to pay in regular amounts over a fair amount of time.
- Once we have completed a draft copy of a CVA proposal, we will present it to your company’s directors for approval. The terms can be revised if necessary, but if a realistic draft cannot be devised, then it may be determined that a creditors' voluntary liquidation would be a more appropriate course of action.
- If a CVA proposal is agreed upon with the directors, we will send it to all of your creditors.
- Then we will convene creditors' and shareholders' meetings. During the creditors meeting we will discuss the CVA proposal with your creditors and give them the opportunity to ask questions or request amendments to the CVA proposal.
- If the voting thresholds are met at the creditors’ and shareholders’ meetings and the CVA is approved, then we will issue a report to all of your company's creditors and to the court. In this report we will detail what happened during the meeting, which parties were present and how each party voted. At this point the Insolvency Practitioner becomes the Supervisor.
- Upon approval of the Company Voluntary Arrangement, all legal actions being taken against your company are halted and no further legal action can be taken against your company unless you fail to keep to the terms of the CVA.
- Finally, the repayment process begins. Payment is made via monthly contributions to the Supervisor. This money is then distributed amongst all of your creditors.
The whole process of setting up a Company Voluntary Arrangement usually takes around 6-8 weeks. As it usually takes around one month from the point that you appoint us as your insolvency practitioner for the CVA proposal to be produced and posted to your creditors. Then the creditors’ and shareholders meetings are held to decide whether the CVA is approved.
When Can A Company Voluntary Arrangement Be Proposed?
We can help you to propose a Company Voluntary Arrangement to your creditors for payment of your debt at any time. So if you are struggling to pay your debts and starting to face pressure from your creditors, contact us ASAP for advice and help.
If you have already been issued with a winding up petition, or your creditors are threatening to issue one, then you may still have time to set up a Company Voluntary Arrangement and save your business if you act fast. If you fail to take action and the court rules in favour of your creditors, you will be issued with a winding up order.
"If your company is facing financial difficulties and you would like to know more about Company Voluntary Arrangements, we can offer free information and advice via telephone or email."
How Much Does It Cost To Set Up A Company Voluntary Arrangement?
If you do decide to go ahead with a Company Voluntary Arrangement proposal, then there are charges associated with this work. This is known as the ‘nominees fee’ and it varies depending on the amount of work involved and the particulars of your case. However, as these fees come out of the money paid to the creditors, it is the creditors who agree the fees.
We pride ourselves on our quality of service and competitive rates. We have helped many businesses all over the country to set up Company Voluntary Arrangements so that they can work their way out of their financial troubles. Simply contact us via telephone, email or online live chat and we can give you a more accurate indication of how much the procedure of setting up a CVA for your company is likely to cost.
So What Should You Do Next?
You can contact us at any time via telephone, email or online live chat for advice and guidance on Company Voluntary Arrangements and other company rescue solutions. We can visit you at your office at very short notice for a consultation.