Good core business struggling with cashflow? Tired of juggling creditors? Problems servicing debt? Call us to see if you qualify for a ‘CVA’.
A CVA is essentially a contract between an insolvent company and it’s members & creditors, which once passed binds all the creditors of the company, to receive an amount usually less that 100p/£ of the total funds owed (representing a better realisation than if the company were to be liquidated) by way of periodic contribution from future profits and by realisation of assets that are obsolete to the company’s future trade.
In essence you are converting your creditors into a single body, with an agreed and affordable repayment plan, much like obtaining bank finance.
For a CVA to be agreed it must be agreed by 75% (by value) of those creditors present and voting and also more than 50% of the shareholders.
The supervisor of a CVA oversees the implementation of the CVA leaving you, the existing management, to continue running the Company until completion of the CVA when hopefully you should be back on your feet.