What are some important points to note if a company plans to go this route to settle the debt?
CVA stands for Company Voluntary Arrangement. This is the procedure wherein a company is allowed to settle debts by paying a portion of the amount owed. Under the CVA, a company can also formulate another arrangement between the company and the creditor regarding how debt payments will be carried out.
This is a good option if your company is in a position where it’s struggling to pay its creditors, and you are ready to put in the work to come up with a proposal that will settle the terms and conditions of the debt payment. A CVA can be a good solution as you look for the best arrangement for debt payment while still protecting your company.
Take note that for a CVA to push through, there needs to be a CVA proposal that has to be approved by your company’s creditors. Aside from this, there’s also the need to negotiate and expertly handle whatever response your creditors may have regarding the proposal. For this, it’s best to seek expert advice from Middlebrook’s insolvency practitioners in London.