A CVA can be a powerful tool. It is frequently used as a solution by directors who feel their company has a viable future.
A CVA is legally binding agreement between a company and its creditors where the creditors accept a proposal from the company in full and final settlement of the debts owed to them.
Benefits of a CVA include:
- Directors retain control of the business
- Relief from creditor pressure
- Stay on legal proceedings from existing creditors
- Flexible to suit your business’s needs
- Retention of key customer and supplier relationships
- Typically, enhanced returns to creditors