What is a CVA?
A CVA is a Company Voluntary Arrangement which is in essence a contract between a company and its creditors which allows the company to delay or compromise the payment of debts. An CVA is flexible and can be adapted. In essence, an CVA will substitute the terms of the person’s existing contracts with his or her creditors with the terms set out in the CVA proposal. For example, the proposal might require the company to pay a fixed monthly sum into the arrangement for a period of say five years so that creditors receive a dividend. An CVA is a proposal to creditors and the term and amount of payments can vary pending on the circumstances and can potentially be modified by creditors. We can assist you and carry out a review of your company’s affairs to ascertain whether an CVA is appropriate for you. We can then help in the drafting of the proposal.