The directors will, with the aid of a Licensed Insolvency Practitioner, devise a scheme whereby the company, through trading, a sale of the business or otherwise, is able to repay a dividend to its creditors.

There is no protection from creditors and therefore once they have been notified of the proposed CVA they may decide to take other steps to wind up the company or protect their position.

All creditors who have been notified of the CVA, which has been agreed by a majority of them, will be bound by it. This means that it is very important to make sure that all creditors have been notified even if they have not agreed to the CVA since they could otherwise take precipitate action.

Secured creditors retain their security and so it will be important to ensure that important secured creditors who could terminate their agreements with the company in the event of a CVA have been approached and agree to support the CVA proposals. Landlords who could forfeit leases are particularly important as are a providers of lease finance etc.

Gore and Company works with companies to help them devise schemes to save their businesses and deal with the claims of creditors.

The services include working to develop tactics to approach important secured creditors, preperation and viability review of proposals and the management of a scheme for a CVA.

Contact us for a free consultation or free initial business review.