An overview of a CVA Procedure
- 1. We will work with the directors of a company to determine the benefits of a CVA. Should the benefits outweigh the negatives then we along with the directors will draft a proposed CVA taking into account the effect it will have for each creditor.
- 2. We will then introduce our client to a debtor friendly Insolvency Practitioner who will review our proposal and once they are satisfied of the necessity for a CVA arrange for the proposals to be circulated to the creditors, shareholders and the court.
- 3. The purpose of which will be to arrange for a creditors and shareholders’ meeting to take place.
- 4. All creditors will be invited to a creditors meeting which is held at least two weeks after the initial notice of the proposed CVA.
- 5. At the creditors meeting our proposal shall be subject to the agreement of 75% of the creditors entitled to vote.
Remember
- Once a CVA is approved it provides for a stay of execution from creditors
- It enables a company to continue trading
- A CVA is a very flexible course of action
- CVA can be a cheaper alternative to liquidation
- A CVA can be combined with the introduction of one of the refinancing products contained within this web site.
We were established to provide impartial advice to directors. With our help we will guide you through every step of the way! Keeping you fully informed and in control of your business. Remember to read our top tips before seeking any advice.