Company Voluntary Arrangements
CVA Specialists
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Marshvale has a 100% record in arranging approved CVA's on behalf of our clients. If your business is struggling now but has a profitable outlook, a CVA may be just what you and your creditors need.
Marshvale has prepared numerous Company Voluntary Arrangements (CVA) for its clients.This is an option for a business that is insolvent now but has a future. A CVA is a proposal put forward to creditors to repay its debts over a period of time. The payments come out of future profits.The process involved is very complex and the application document to the court requires detailed input. Difficult discussions are often necessary with Debenture holders (Banks) and key creditors prior to the application. Creditors have to approve the proposalby a 75% majority, so it has to be right first time.
Marshvale has never failed in securing an agreement
Advantages to the Business:
-protects the business as there is a legally binding agreement issued by the Court. This prevents Winding Up Petitions and other Court actions such as CCJ's.
-freezes the unsecured debt and ensures a fair payment to all creditors, supervised by an independant Officer of the Court.
-Crown debts, PAYE, NI and VAT can be include.
-interest is frozen.
-payments made from future profits, usually up to 60 months.
-the business continues to trade with current Directors and Shareholders in control.
Advantages to the Creditors:
-the proposal document is detailed and enables each creditor to appraise the outcome.
-always a better outcome than a Liquidation.
-in any case, the creditor has a vote to accept or reject the proposal.
-the debt need not be written offand hence does not necessarily weaken the Balance Sheet.
-the collection of installments and the pay out to creditors is very strictly controlled by the independant Supervisor.
-the business continues to trade, allowing creditors to continue supplying goods and services, thus not losing an account.
If you wish to discuss whether a CVA is an option for your company's survival, call Alan Cornwall for a confidential discussion on 01630 647473.
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