The “rescue” solution.

A CVA is essentially a formal deal supervised by an insolvency practitioner between a company and its creditors which allows the company to trade on despite financial difficulties. 

We feel that this arrangement can often represent the best ‘rescue’ solution.

Why?

• If your company is essentially viable but you have cashflow problems, a CVA gives you the opportunity to relaunch your balance sheet.

• It can prevent creditors from winding up your company or taking other court action and so ensures that cashflow pressure can be eased.

• Your business can continue to trade with the existing management and board of directors in place.

• A CVA can be used to legitimately write off company debts.

• It generally treats all creditors with greater fairness than other turnaround techniques.

• It is cost effective in terms of professional expense compared to administration or liquidation and can leave directors’ personal financial affairs much less exposed.

• A CVA can often be used alongside a new source of finance for the company and thus encourage stability.

• It can be written, proposed and approved in less than one month.