CVA – Who needs a company voluntary arrangement?

As well you being able to apply for a corporate voluntary arrangement (CVA), it may also be proposed by the Administrator dealing with your corporate administration order or the Liquidator dealing with your company liquidation.

Companies who benefit from a corporate voluntary arrangement include those which:

• Want to avoid the stigma of liquidation
• Need some time to put together a new business plan for the company
• Need to restructure.
• Will be profitable in the short term, but are under pressure from creditors
• Know they can be profitable and successful in the future but need a bit of time
• Are profitable but have experienced bad debts or late payers this affecting the short term health of the company.
• Have close ties with their suppliers and do not want to see them lose what they are owed
• Want to wind down trading in an orderly fashion
• Want to close down over a certain time.

Entering into an individual voluntary arrangement is a very serious decision to make. You should  seek legal or financial advice about the insolvency options available to you.

More information

• CVA – What is a company voluntary arrangement?
• CVA – The company voluntary arrangement process
• CVA – When to apply for a company voluntary arrangement
• CVA – How to apply for a company voluntary arrangement
• CVA – The advantages of company voluntary arrangements
• CVA – The disadvantages of company voluntary arrangements
• CVA – Insolvency and company voluntary arrangements