Company Voluntary Arrangement (CVA)
Negotiate affordable repayments and keep your business running with expert CVA support from Chamberlain & Co.
A Company Voluntary Arrangement (‘CVA’) is applicable where Directors believe that their Company has a viable business which can return to profitability.
A Company can use a CVA to pay an amount to creditors over a period of time and at the end of the CVA any balance outstanding to creditors is written off. Creditors are required to agree to a CVA but should they agree the Company will be able to continue trading.
What is a Company Voluntary Arrangement? (CVA)
A Company Voluntary Arrangement (CVA) is a formal agreement between a business and its creditors to restructure debt and improve cash flow. It allows struggling companies to continue trading while making manageable repayments over an agreed period. Chamberlain & Co provides expert guidance to ensure a successful CVA process.
Key Benefits of Our CVA Services:
- Business Continuity: Keep your business operational while resolving financial difficulties.
- Reduced Debts: Negotiate affordable repayment terms with creditors.
- Legal Protection: Protect your company from creditor actions while the CVA is in place.
- Tailored Support: Receive bespoke advice and ongoing support throughout the CVA process.
Why Choose Chamberlain & Co for Your CVA?
Chamberlain & Co has over 25 years of experience helping businesses navigate financial challenges with innovative solutions like CVAs. Our team of insolvency experts is dedicated to providing personalised, professional advice to achieve the best outcome for your business.
- Experienced Insolvency Practitioners: Our experts have extensive experience in managing CVAs for companies across various industries.
- Personalised Solutions: We tailor our approach to suit your business’s unique financial situation.
- Transparent and Supportive: We ensure you understand every step of the CVA process and offer continuous support.
- Regulated and Trusted: As an ICAEW-regulated firm, we adhere to the highest standards of integrity and professionalism.
Our Comprehensive CVA Services
Chamberlain & Co offers complete support for businesses considering a CVA:
- Initial Consultation – We assess your financial situation and determine if a CVA is the right solution.
- Proposal Preparation – We prepare a detailed proposal outlining repayment terms to present to your creditors.
- Creditor Negotiations – We negotiate with your creditors to agree on affordable repayment terms.
- Implementation and Monitoring – We oversee the implementation of the CVA, ensuring compliance and monitoring progress.
- Ongoing Support and Reviews – We provide continuous support and conduct regular reviews to ensure the CVA remains effective.
How Our Company Voluntary Arrangement Process Works in 5 Simple Steps
Step 1: Free Initial Consultation – Discuss your financial situation with our experts to explore the CVA option.
Step 2: Detailed Proposal Development – We create a customised proposal for creditors that outlines repayment terms.
Step 3: Creditor Meeting and Approval – Creditors vote on the proposed CVA; approval requires a 75% majority by value.
Step4: CVA Implementation – Upon approval, the CVA is implemented, and your business begins the agreed repayment schedule.
Step 5: Ongoing Management – We provide ongoing support and adjust the CVA as necessary to ensure its success.
Testimonial
Chamberlain & Co were able to quickly assess the circumstances of the Company and identify areas within the business that were not profitable. We assisted the Company in preparing cash flow forecasts to establish the level of monthly contributions that the Company could pay towards its creditors.
A CVA proposals was drafted based upon these forecasts and the change in focus of the business to concentrate on its most profitable trading activities. The CVA provided an invaluable tool to restructure the business and return to profitability while maximising the return to creditors.
Contact Us
Contact Chamberlain & Co today for expert guidance on implementing a Company Voluntary Arrangement, call now – 0113 242 0808
Chamberlain & Co is a leading provider of CVA services, trusted by businesses across the UK.
- Regulated by ICAEW: We adhere to the highest standards of insolvency practice.
- Confidential and Professional: Your business information is treated with the utmost confidentiality.
- Proven Success: Our team has helped numerous businesses successfully implement CVAs and return to financial stability.
Frequently Asked Questions About Company Voluntary Arrangements
What is Company Voluntary Arrangement?
A Company Voluntary Arrangement (‘CVA’) is a legally binding agreement between the Company and its creditors. It provides a solution by which companies in distress can formulate a plan to pay monies towards their debts over a fixed period of time. The CVA requires the approval of 75% of creditors, by value, who vote, to support the CVA proposals to be accepted. Upon successful conclusion of the CVA any remaining debt is written off and the Company continues to trade as normal outside of the CVA. The CVA is a powerful tool to allow the Company to address issues within the business, cut costs and restructure its trading activities.
Any Company looking to consider a CVA will need to seek the assistance of a Licensed Insolvency Practitioner who can advise Directors on the most appropriate course of action given the particular circumstances. Chamberlain & Co are a firm Licensed Insolvency Practitioners who have over 50 years’ experience in advising Companies in financial distress.
Who is a CVA for?
- If the Company has a viable core business with prospects of becoming profitable (possibly following a restructure or cost reduction exercise)
- The Company has suffered the effects of a one-off incident such as a significant bad debt or can address the cause of the current financial situation
- The Company wishes to restructure its business to return to profitability but wishes to avoid Liquidation or Company Administration
What are the advantages of Company Voluntary Arrangement (CVA)?
- The Company is allowed to continue to trade.
- Director remain in control of the Company and business.
- There is no requirement to investigate the conduct of Directors.
- There is less publicity regarding the Company entering a CVA compared to other insolvency processes.
- Stop pressure from tax, VAT and PAYE while the CVA is being prepared.
- Enables the Company to restructure and cut costs.
- Usually a better return for creditors than other insolvency processes.
- Allows the termination of onerous contracts which will then be included in the CVA (including contracts of employment).
- Variations to the original CVA proposals can be presented to creditors should there be a requirement to vary the terms of the original proposals (any such variation requires the agreement of creditors)
What are the disadvantages of Company Voluntary Arrangement (CVA)?
- A CVA requires 75% of those creditors who vote in the process (by value of debt ) to agree to the proposals.
- The Company’s credit rating will be affected making it difficult to obtain any credit.
- A CVA can last a long period of time (usually 3 – 5 years).
- Should the Company fail to adhere to the terms of the CVA then the CVA could fail and creditors could take legal action and it could result in the Liquidation of the Company
Who can benefit from a CVA?
Businesses facing financial difficulties but with a viable core operation can benefit from a CVA to restructure their debts and regain stability.
How long does a CVA last?
Typically, a CVA lasts between 3 to 5 years, depending on the terms agreed with creditors.
Can a CVA stop legal action from creditors?
Yes, once a CVA is approved, it prevents creditors from taking further legal action against the company, provided the company complies with the agreement terms.
What happens if a CVA fails?
If a CVA fails, the company may face liquidation or other insolvency proceedings. Continuous monitoring and support from Chamberlain & Co can help prevent this outcome.
Alternative solutions to a CVA
It may be that a CVA is not the right solution for your company. There are other solutions available and the right route is very much dependent upon your circumstances.
Administration – This solution quickly protects the Company from creditor pressure and allows the Company to try and formulate a rescue plan. This process can conclude by proposing a CVA to creditors or by selling the business in what is call a pre-pack Administration.
Find out more about Administration here
Liquidation – It may be that the Company is unable to continue and that there is not a business to save. In this scenario a liquidation may be the best option for your company.
