A CVA can be proposed by
– the administrator, if there is an administration order
– the liquidator, if the company is being wound up; or
– the directors, in all other circumstances
As mentioned earlier the arrangement is controlled by your supervisor (must be an Insolvency Practitioner), the court has limited involvement. The directors of the company have day to day control over their business.
A CVA usually last between three to five years. In some cases creditors are fully paid over that time or they receive a part payment, and the balance of the debt is written off.
CVAs are particularly useful when a company that is basically profitable suffers a one-off difficulty, such as a large bad debt.
If you would like more information, please feel free to call us to discuss the process in more detail.