
Making Tax Digital for VAT: A reminder
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When you need forbearance or forgiveness from creditors generally, supported by the certainty of mutual binding commitments, a Company Voluntary Arrangement (CVA) may be part of an appropriate solution.
A CVA is a flexible tool for restructuring the finances of companies with a viable business but burdened with debt. The directors remain in control of the company and work with the CVA supervisor to find a way to trade out of the financial difficulties.
A CVA is a contractual compromise entered into between a company and its creditors. The approval of a CVA requires the agreement of at least 75 per cent in value of voting creditors, but if more than 50 per cent of the unconnected creditors vote against the proposal, it will be defeated. More than 50 per cent in value of voting shareholders must also approve the proposal. Whilst an approved CVA does not bind secured or preferential creditors without their consent, all unsecured creditors – including those who did not vote or did not receive notice of the meeting – are legally bound by the terms of the arrangement.
A CVA proposal typically will provide that a proportion of the debts is to be repaid over a fixed period by means of contributions paid to the CVA supervisor. Other options could be to agree to a disposal of assets or the introduction of fresh capital.
We have the expertise to advise on, and assist with, the preparation of realistic trading projections and affordable repayment proposals for creditors. Our experience is that creditors are usually willing to consider supporting a CVA – even though they will not recover all they are owed – as long as the proposal is fair and reasonable and provides a better return than if the company went into liquidation.
Using the CVA process, our licensed insolvency practitioners have assisted with the financial restructuring of many companies struggling with cash flow problems or facing threats from creditors.
Corporate Restructuring Partner
Corporate Restructuring Partner
Corporate Restructuring Partner
We provide practical, business focused advice to help you achieve your business objectives. Our team of experts are available at any one of our four office locations and have an extensive knowledge and experience across a wide range of sectors.
4 Offices, London, St Albans, Rickmansworth and Milton Keynes
Joined-up advice across all services, including, Corporate Finance, Corporate Restructuring and Corporate and Business Tax
Considerable expertise and insight into a range of different industries
Recognised as thought leaders in Restructuring and Insolvency - editorial, speaking, commentating and government advice
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