We advise individuals whether they be employed, self- employed, or unemployed, on all aspects of personal insolvency.Find out more
If a business has accumulated unsecured debt which it is unable to service but nonetheless has a viable business, it may seek to make an arrangement with its creditors to repay the debt over a period of time.
At Kingsbridge we can help you to review the company’s financial position and assist with making an offer to creditors.
Your offer may be made informally if the business has few creditors and you expect to be able to repay the accumulated debt over a short period of time. If the issues are more complex we will help you consider the viability of a Company Voluntary Arrangement (“CVA”).
A CVA is a powerful and flexible insolvency procedure that enables a viable company to reach a compromise with its creditors, allowing the business to be restructured, costs to be cut and creditor pressure to be reduced.
Importantly, the company’s management remain in control of their business, subject to the terms of the arrangement and the supervision of an insolvency practitioner.
The company may raise funds to pay creditors from the sale of surplus assets or from future trading profits. If the Company’s offer is accepted by 75% or more of creditors, all creditors are bound by the terms of the arrangement and cannot take action against the company or its assets outside of the arrangement to recover debts.
Our team has extensive experience in helping companies, large and small, to implement successful CVAs. We will support you in drafting a fair and achievable proposal, help you gain the support of the company’s creditors and help to ensure that the proposal is successful.
Why not contact us to find out more about CVAs.