A company voluntary arrangement (also known as a creditors voluntary arrangement) can shield you from creditor action while we try to save your business.
Frost Group will guide you through a Company Voluntary Arrangement. This means that, as directors, you can enter into a legally binding compromise - to help you keep trading while working out a payment plan with your creditors.
With a Company Voluntary Arrangement, you make a formal agreement with your creditors. You will need more than 75% in value of those creditors voting to vote in favour. Once agreed, your creditors are legally bound to accept the terms of the CVA, even the non-voters.
The procedure is extremely flexible and may involve delayed or reduced payments of debt, capital restructuring or an orderly disposal of assets.
A CVA is strategically valuable to you. Particularly where there are dissenting minorities.
As licensed Insolvency Practitioners, Frost Group can accept appointments as Nominees and Supervisors of CVAs. a CVA can only be entered into with the help of a licensed insolvency practitioner who will act as the supervisor and nominee.
It is important to act swiftly as soon as you feel pressure mounting from creditors. A CVA can be suitable for most types of business and they may have the opportunity to use it, however, it does depend on the individual facts. As Licensed Insolvency Practitioners we will review your circumstances and give you all the options available.
Initially the insolvency practitioners will start by working out what a company can pay and over what time period, this proposal is then submitted to the creditors who then vote on whether or not they wish to agree. This proposal is obviously heavily influence by the level of debt the company has and the ability for the company to generate money to pay the creditors in any given time frame. The job of the experienced team at Frosts is to create a plan that will be accepted by the creditors as well as one that is achievable for the business. Ultimately the aim is to help the business turnaround the situation and return to normal trading.
Once the CVA is drawn up it then has to be accepted by the directors. Then it is filed with the court and a final copy is sent to all creditors prior to a creditors meeting. This meeting will lead to a vote on whether or not to accept the CVA.
If all parties approve of the proposal then the chairman will issue a report to the creditors and the court. Once this is done any and all legal action against the company are frozen.
From then on regular payments are made as agreed. If this continues and all payments are made then the company can go on trading without fear of being wound up. However, if payments are not made action can be taken to put the firm into liquidation.
The Frosts team will work with your business, the courts and the creditors to make sure your business has every chance to move forward
If you would like to talk to an Insolvency Practitioner, call us today on 0345 260 0101. Our Insolvency Practitioners give free and impartial advice on Company Voluntary Arrangements from our offices in Croydon and London and can shield you from creditor action while we try to save your business.
It is important to understand if your company is eligible to enter into a CVA so get in touch today to find out more.
Our team member below will be able to help with all your questions
CEDR Accredited Mediator & Licensed Insolvency PractitionerContact
At Frost Group, we want to make things as easy as possible for you. That is why, if you can’t come to us, we’ll come to you. We operate face to face, nationwide meetings, wherever is most convenient for you.