Company Voluntary Arrangement (CVA)
A Company Voluntary Arrangement (CVA) is a formal business rescue option for insolvent companies that’s initiated by the directors. It involves deferring creditor payments and freezing historic debts in order for the company and its creditors to come to a new agreement for the payments.
What is a Company Voluntary Arrangement (CVA)?
A Company Voluntary Arrangement (CVA) is used for companies who are experiencing difficulties in paying their debts but have an underlying business that’s worth saving.
The advantages of a CVA is that it can ensure the survival of the company with the directors in charge, while interest on debt repayments is frozen and affordable instalments are agreed.
We’ve got an article dedicated to explaining the Company Voluntary Arrangement process in more detail. You can read it here.
Our aim throughout the CVA process is to take the burden off the directors from the start; we prepare the necessary paperwork and arrange the meetings with creditors.