McTear Williams & Wood

Company voluntary arrangement (CVA)

Do you have a potentially viable business?  If so, a company voluntary arrangement may be right for you.

What is a CVA?

A company voluntary arrangement (CVA) allows directors of an insolvent company or a company in financial difficulty to reach an agreement with its creditors regarding payment of its debts.  If in administration the administrators can agree a CVA on the company's behalf.  The CVA process has to be carried out by a licensed insolvency practitioner but unlike administration the directors remain in control.

The advantages of such an agreement are that creditors cannot take action against the company during the CVA and once it has been completed the company has no ongoing liability to its pre CVA creditors.

How can McTear Williams & Wood help?

Although a CVA is not suitable for every company in financial trouble, it can allow the company to trade through its difficulties and give the directors more time to get their finances back on track without threat from creditors.  It is the closest UK insolvency procedure to Chapter 11 in the USA.

If your business is facing trading difficulties we would encourage you to contact us without delay.  CVAs are usually only available to companies that have a potentially viable business that has not been too damaged by a prolonged period of financial difficulties.  Seeking early advice can mean the difference between rescue and insolvency.

For a free and confidential initial meeting contact us on 0800 085 5070