Company Voluntary Arrangement
We can assist Directors anywhere in the South West with a Company Voluntary Arrangement .
Broadly speaking a Company Voluntary Arrangement (“CVA”) is a legally binding contract between the company and its creditors where the owners want to save the business but cannot afford to pay all of the debts due now.
It usually involves a freezing of interest and partially writing off debts with an agreed payment plan over one to five years, whilst continuing to trade.
If suitable, a CVA can mean a fresh start for the company. This insolvency procedure tends to be proposed as an alternative to Liquidation when the Directors wish to continue to trade the company. This can mean that a business can be saved and employees may be able to keep their jobs.
This also means that the Directors are able to retain control over the company, albeit under the Supervision of Neville & Co, who ensure that the company adheres to the terms of the CVA.
Successful CVAs usually have a better outcome for the company and the creditors than liquidation because the company continues to trade and creditors usually get a higher dividend. In addition the costs of Liquidation are usually higher than those of a CVA.
At our initial free meeting we can provide you with advice as to whether a CVA is the best option for your company in the circumstances or whether an alternative should be considered. We can explain the pros and cons of all of your options available to help you make the right decision.
When to consult us
The sooner we are consulted the sooner we can assist you in finding a way through the business difficulties you are facing. The later it is left, the fewer the options will be. The best time to consult is as soon as you become a distressed company and any financial difficulties become apparent. You don't want to be building up company debt, unpaid invoices and outstanding creditors through wrongful trading and end up an insolvent company in a difficult financial position facing legal action.
If you are a struggling company or have been affected by Covid 19, contact us now for confidential advice. We are a local business supporting local businesses covering all of Devon, Cornwall and Somerset.