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Can A Company Enter A CVA When It’s In Administration?

A company can enter into a Creditors Voluntary Arrangement (“CVA”) when it is in Administration. A CVA is one of the possible exits from Administration.

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Administration is often used as a procedure to protect a company whilst a solution is sought or it is used to give time to get a better return to creditors. In some cases the exit from Administration will be a CVA. The CVA is proposed to shareholders and creditors by the Administrator (usually with the help of the directors) and if the CVA is approved the control of the company passes back to the directors.

To get free advice about your options and whether you’re eligible for a CVA, call Kirks Insolvency.

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