info@spkfs.co.uk
Liverpool: 0151 739 2398
Cleckheaton: 01274 271 289
Mon-Fri 9am – 5pm

SPK Financial Solutions Limited have rebranded to Mackay Goodwin Limited

Please note, SPK Financial Solutions Limited have rebranded to Mackay Goodwin Limited. Please be assured, we are the same team as before, providing the same tailored professional advice and services. Our contacts numbers remain the same, so if you have any queries just give us a call!

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SPK Financial Solutions Limited

Company Voluntary Arrangements (CVA)

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Contact us today to find out more information about our services and arrange for a FREE consultation.

A Company Voluntary Arrangement (CVA) is a legal agreement between a company and its creditors that allows the company to repay its debts over a period of time, rather than all at once.

This can be a useful tool for companies that are facing financial difficulties, but believe they can recover with a bit more time and flexibility in their debt repayment.

There are several advantages of a CVA for both the company and its directors:

For the company, a CVA can help to restructure debt and avoid liquidation. This can allow the company to continue operating, maintain jobs and protect its assets, rather than having to sell them off to pay off creditors.

For the directors, a CVA can help to avoid the potential for personal liability for the company’s debts and can limit the risk of disqualification as a director.

The CVA process usually involves a licensed insolvency practitioner who will act as the nominee, and be responsible for drawing up the proposals and the supervision of the process, this can be a great help for the directors who may not have the necessary expertise in such matters.

It’s also important to know that a CVA process can have negative consequences such as damaging reputation, which might affect the company’s ability to trade, but on the other hand, it can be a much better option than going into liquidation.

A CVA can also provide a period of financial stability and security, which can help the company to improve its financial position, and to attract new investment or funding.

Additionally, CVA can also provide a breathing space for the directors and the company to come up with a viable recovery plan and allow them to continue trading while making payments to creditors under the agreed terms.

It’s important to note, however, that a CVA is not always the best solution for all companies, and it’s important to consider the long-term prospects for the business, and potential impact on stakeholders, before deciding to enter into a CVA.