It is often in the best interests of an insolvent company’s creditors and can allow the company to continue trading under the control of its directors and avoid redundancies.
The company proposes an agreement with its creditors detailing how its debts are to be repaid. The CVA proposal will be based on the level of debt the company can reasonably afford to pay over a given period and may provide for partial or full repayment. This will include any taxes due, rental arrears (leases may be able to be renegotiated too), suppliers etc.
The CVA requires the approval of at least 75%, in value, of the voting creditors. If approved, the CVA will bind all creditors who were entitled to vote.
RG Insolvency are experienced in providing you with practical advice on proposing a viable CVA and dealing with issues such as ongoing funding and future profitability.
RG Insolvency will assist you in the preparation of all documents and deal with your creditors directly.
Call us now on 020 3603 7871 to discuss your options.