Company Voluntary Arrangement Services
Byrne Associates are experts in the setup and provision of Company Voluntary Arrangements for business clients in Bristol and across the South West region. Our team has many years of experience and can help you retain control of your company – take a look below to find out more on CVA’s.
A Company Voluntary Arrangement is a deal between a company and its creditors. It allows the directors to remain in day to day control of their business and is designed to facilitate the survival of the company.
Provided 75% of creditors, by value, agree to the proposal put forward, then all creditors are bound to the arrangement. The proposal sets out the business strategy and timing and extent of dividends to be paid to creditors. Once the proposal for the CVA is accepted, the insolvency practitioner acts as Supervisor of the arrangement and provides annual reports to creditors on the progress of the arrangement.
Procedure for Company Voluntary Agreements
- Directors of the company prepare CVA proposals for the repayment of the company's debt and a statement of the company's affairs including details of assets and liabilities. In practice the insolvency practitioner will draft this document on behalf of the directors based on the information they have provided
- Notice is given to the insolvency practitioner (who at this stage is acting as Nominee) who then prepares a report to Court to state whether the CVA proposal has a reasonable prospect of being approved and implemented
- Nominee summons a meeting of creditors where the creditors vote to accept or reject the proposal
- Once approved, the terms of the proposal must be strictly adhered to and the insolvency practitioner will monitor this in their role as Supervisor
Smaller companies may also take advantage of a moratorium whilst the proposal is being drafted which provides added protection against creditor action.
Please contact us if you wish to discuss this option in more detail.
25 April 2016
22 March 2016
20 January 2016
- Head Office: Suite 3 Farleigh House, Farleigh Court, Old Weston Road, Flax Bourton, Bristol, BS48 1UR
- Tel: 01275 464 038
Fax: 01275 462 937