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Company Voluntary Arrangement (CVA)

A CVA is a formal insolvency procedure which allows a company in financial trouble to reach agreement to pay its debts (or part of its debts) over a period of time. A Proposal for a CVA is prepared by a Licensed Insolvency Practitioner on behalf of the company's directors. However, the directors remain in control of the day to day management of the company.

A CVA is appropriate in many situations, for example:

  • Where a company is profitable but has suffered from bad debts
  • Where a company has cash flow problems, but is able to prove long term profitability
  • Where there is a strong core business but justifiable reasons for current insolvency
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