“The practice is based upon hard work and ability and doing the job for the client before anything else"

Legal 500 | 2020 Edition

Winner of the Legal 500 - 'Criminal, Fraud & Licensing Law Firm of the Year 2019'

Company Voluntary Arrangement

Our team of lawyers is experienced in relation to the full range of insolvency procedures, including a Company Voluntary Arrangement (‘CVA’).

How We Can Help | Our Insolvency Litigation Services

We provide advice, assistance and representation in relation to insolvency matters to a wide range of clients including:

  • Company directors, shareholders and members
  • Creditors – secured, unsecured and preferential
  • Insolvency Practitioners

We understand that entering into a CVA can be a difficult and unfamiliar situation.

We assist our clients through many types of insolvency issues and we use our experience to deliver fast, cost-effective solutions wherever possible.

Feel free to call us for an initial no obligation confidential discussion:

What is a CVA?

A CVA is a formal process available to a company in financial distress that enables the company to come to an Arrangement with its creditors.

The CVA allows the company to remain in business whilst following a formal debt repayment plan over a period of time that has been agreed with its creditors.

A licensed Insolvency Practitioner will be required to act as Nominee and Supervisor of any repayment scheme agreed with the creditors.

What are the benefits of a CVA?

  • The company remains ‘in-tact’ and the directors continue to operate the business (not the Insolvency Practitioner).
  • Preservation of goodwill.
  • Preservation of tax losses.
  • Creditors are usually willing to support a CVA as it is likely to return more funds to the creditors than any other form of insolvency procedure.
  • All creditors are bound by the Arrangement once it has been agreed but creditors also have the benefit of a legally binding agreement.
  • Creditors are not allowed to commence or continue legal action against the company provided the company adheres to the terms of the Arrangement.
  • A single consolidated monthly payment is made to the Insolvency Practitioner by the company to cover all debts.
  • Less costly than other alternative insolvency procedures, such as liquidation.
  • Less damaging than the alternative insolvency procedures such as a winding up petition/compulsory liquidation.
  • Less adverse publicity as public advertising is not a requirement for a CVA.

How does the process for a CVA work?

In broad terms the following steps will be followed when agreeing a CVA:

  • An Insolvency Practitioner will be appointed to:
  1. undertake a review of the business and its assets/liabilities.
  2. prepare a proposal for the approval of the directors.
  • As the appointed Nominee of the Arrangement, the Insolvency Practitioner will file the proposal at court and provide a copy to all the creditors.
  • A creditors and shareholders meeting is called.
  • More than 75% of creditors need to approve and vote in favour of the proposal. If approved, all creditors are bound by the proposal including those creditors who voted against it.
  • On approval of the proposal, the Insolvency Practitioner will prepare a Report to the court and to the creditors confirming the outcome of the vote.
  • The CVA takes effect from the day of the creditors’ vote (and not the date of the filing of the Report with the court).
  • The Insolvency Practitioner will supervise the Arrangement for its duration and notify Companies House when the CVA comes to an end.

If the CVA is rejected at the creditors’ meeting, the other insolvency procedures remain open to both the company (Administration, CVL or Pre-Pack Administration) and to the creditors (winding up petition and compulsory liquidation). 

Who Can I Contact For Help? | Kangs Insolvency Solicitors

We welcome new enquiries by telephone or email.

Our team of expert lawyers is here to guide you in relation to any issues concerning insolvency matters including CVAs and Administration.

We are happy to provide an initial no obligation confidential consultation at our offices in London, Birmingham or Manchester or via video conferencing facilities.

Contact

Mr Stuart Southall | Head of Insolvency Team
ssouthall@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396

Mr Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888

Mr Naz Maqsoom
nmaqsoom@kangssolicitors.co.uk
0161 817 5020 | 0121 449 9888

 

    The team is intelligent, hardworking and determined to do a professional job

    Legal 500 | 2020 edition

    An acute attention to detail and a tenacity that clients really rate are features of this firm

    Legal 500 | 2020 edition

    The lawyers are ‘knowledgeable and approachable’

    Chambers & Partners | 2020 Edition

    Latest News

    Confiscation Orders | Tainted Gifts | Kangs POCA Solicitors

    The article posted to this website on 10 July 2020 entitled ‘Confiscation Orders | The Assumptions’ focused upon various factors considered when ascertaining the amount to be repaid by a convicted defendant as the result of financial gain received by that person...

    Confiscation Orders | The Assumptions | Kangs POCA Solicitors

    Conviction for certain criminal offences will result in the making of a Confiscation Order under the Proceeds of Crime Act 2002 (‘POCA’’).  Part of the process involved in calculating the financial liability of a defendant to be paid under a Confiscation Order will be...

    Trading Standards Officers Powers | Kangs Regulatory Solicitors

    Trading Standards Officers exercise such powers as the right to enter premises to inspect and to secure or seize material that might be required by way of evidence in any subsequent court proceedings.   Most of these powers are granted by the Consumer Rights...

    EncroChat Arrests | Encrypted Phones Defence Solicitors

    A number of arrests have been made in recent days in the UK and across Europe as a result of law enforcement agencies gaining access to an encrypted phone network called EncroChat which is allegedly widely used by criminal networks. The National Crime Agency (NCA) has...

    Birmingham

    2 Wake Green Road, Moseley
    Birmingham, B13 9EZ

    0121 449 9888

    London

    9 Carmelite Street,
    London, EC4Y 0DR

    020 7936 6396

    Manchester

    76 King Street
    Manchester, M2 4NH

    0161 817 5020