Company Voluntary Arrangement
Company Voluntary Arrangement (CVA) is a formal insolvency procedure that enables financially distressed businesses to negotiate a binding agreement with creditors, allowing for the repayment of debts over an extended period. This arrangement provides companies the opportunity to restructure their financial obligations while continuing operations under the existing management.
Key Benefits of a CVA:
Enhanced Cash Flow: By consolidating debts into manageable payments, a CVA can quickly improve your company's cash flow.
Creditor Pressure Relief: Initiating a CVA halts threats such as winding-up petitions and alleviates pressure from creditors, including tax authorities like HMRC.
Operational Control Retention: Directors and shareholders maintain control over the company's operations, facilitating a focus on business recovery.
Cost Reduction: The arrangement allows for the termination of onerous contracts and, if necessary, the redundancy of employees, aiding in cost-cutting measures.
Lease Obligations Management: A CVA provides the ability to terminate property leases and vacate premises that are no longer viable.
Is a CVA Suitable for Your Business?
A CVA is most effective for companies that have a viable core business but are burdened by historic debts or cash flow issues. It offers a structured path to address financial challenges without resorting to liquidation. Engaging with a licensed insolvency practitioner can help determine if this solution aligns with your company's needs.
How Westgates Restructuring Can Assist
At Westgates Restructuring, we specialize in guiding businesses through the CVA process with professionalism and empathy. Our experienced team will work closely with you to assess your company's financial situation, develop a feasible repayment plan, and negotiate with creditors on your behalf. We are committed to helping you navigate financial challenges and achieve long-term stability.
Take the First Step Toward Financial Recovery
If your business is experiencing financial difficulties, prompt action is crucial. Contact Westgates Restructuring today for a free initial consultation to explore whether a Company Voluntary Arrangement is the right solution for your company. Our experts are here to provide the support and guidance you need to regain control and move forward confidently.
We will work with you to understand your company’s debt levels; we will then establish a level of debt you can afford to pay back. This will be based on affordability and we will help you look at your cash flow to work this out. Contact us now for a free initial consultation.