In more detail
If you do not know whether a CVA is a good idea for your business it is best to talk to a Licensed Insolvency Practitioner like us. We can ask you the right questions to find out what the right options are for you. The circumstances that usually make a CVA the right decision are:
- You have had some problems in the past but these are solved. Some examples would be a pension shortfall claim or you have closed some unprofitable branches.
- You can predict that going forward you can make a profit.
- You have the support from some of your main creditors and that should continue.
- You may have some company assets, trading name, brand or certifications that you need to continue within your company name.
A CVA is not as fast a rescue process as an Administration. A CVA can take four to six weeks to put together.
The company has to make a written proposal to creditors which includes forecasts and cash flows. It also includes a company history, balance sheet and good reasons to creditors why a CVA is fair to them and you.
