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CVA (Corporate Voluntary Arrangement)

A CVA (Corporate Voluntary Arrangement) is a legally binding agreement between a company and its creditors. It avoids court action or winding up procedures from your creditors. A meeting is held between the company and its creditors where a proposal is made. If 50% in number and 75% in debt of the creditors agree then a CVA can be agreed which would be legally binding. If the monthly repayments are not made by the company then any of the creditors could issue winding up orders against the company.

Advantages – It allows the company to function and may even ease their cash-flow allowing the company to return to profitability. It is a rescue plan where the company’s debts are restructured and avoids the stigma of bankruptcy.

Disadvantage – the company’s credit profile and rating with be damaged which may affect you getting credit in the future from your suppliers or the bank.

How can Mayfair Debt help?

Our panel insolvency practioners can give your informal advice as to best determine the best course of action for your company. It is completely confidential.