Company Voluntary Arrangements (CVA)
Using a CVA some of this debt can be discounted (or compromised), but just as important the debt is deferred with a legally binding moratorium. This can buy the time they need to reorganise.
Powerful CVA case law allows the removal of employees and the termination of onerous contracts such as property, shops, motor vehicles and so on, without the company having to pay redundancy cost or termination fees.
Using a CVA the ball and chain can be cut free and the business can recover. Still there are hurdles and creative use of Hive Downs and refinancing can avoid the stigma of pre-pack administration which is now being slowly legislated against as a restructuring tool.
The directors of KSA Group have been writing CVAs since 1995, in that time we have worked with almost every type of company with many of the common problems referred to above. This tool is useful for small, medium or large companies., it is a reasonably quick process and can be very cost effective.
Much maligned and misunderstood the CVA is great framework for recovery of a viable business, but is of course no panacea.
See our further guides below; Will open page on company rescue web site
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