The terms of a CVA allow directors retain control of their business and continue to trade as before.
A Company Voluntary Arrangement could be the appropriate procedure if the directors of a company are confident that, despite existing difficulties, the business is viable and that they are willing and able to carry out a rescue programme. The experienced professionals at Restart BTi will offer vital and realistic expertise to make that assessment.
The terms of a CVA allow directors retain control of their business and continue to trade as before. Unsecured creditors, including trade debts and debts to HMRC, would be contacted on the company’s behalf and a payment agreement would be reached with the aim of easing cash flow issues and reducing the overall immediate pressure on the business to allow the directors time to make the necessary adjustments to allow a recovery.
The CVA is legally binding, ensuring that debts to unsecured creditors are frozen. Over an agreed period of time the company would repay between 25% and 100% of what is owed, calculated in accordance with ability to pay. The monthly payments agreed would be in full and final settlement of all debts to creditors.
CVAs usually last for five years, but in some cases a lump sum contribution or re-financing of assets could be offered at some stage, thus reducing the duration of the CVA. Restart BTi will be on hand to assist throughout.