Company Voluntary Arrangement Cole Henley in Cole Henley

Contact Us

Company Voluntary Arrangements or CVAs, as they are also known, are one of the ways in which a limited company, which is classed as insolvent, can pay back their debts to creditors over a fixed period of time.  Insolvency is when a company is unable to pay back their debts as they fall due or if they do not have enough assets to cover its debts, for example, if the value of assets falls less than the amount of liabilities. 

If you think this may apply to you and your company, don’t fret, we can definitely help. If your company is deemed insolvent, then the director no longer has a primary responsibility towards the care of its shareholders but its creditors instead.  It is similar to bankruptcy, but bankruptcy is the term used only for personal debt, whereas insolvency is the terminology used for business debt.

Find Out More

Many companies across the UK find themselves insolvent and every circumstance of insolvency is different to the next.  That is why there are several ways that directors can consider to ensure that the matter is best resolved.  It is recommended that companies seek sound advice to ensure that the best solution is chosen, and this should be chosen sooner rather than later. 

There are in fact four different procedures to consider if you feel as though your organisation is heading towards insolvency that may help rescue the situation before it gets bad.  These include Administration, Administrative Receivership, Liquidation and finally, as discussed below, Company Voluntary Arrangements.   This is one of the lesser known insolvency procedures available for businesses.

What is a Company Voluntary Arrangement?

A Company Voluntary Arrangement is an agreement with your company’s creditors to allow more time to pay back debts. This is a legally binding agreement as it stands and 75% of creditors, by value, must support the proposal, otherwise it will not be approved. 

After the proposal has been approved by all involved, any unsecured creditors are bound to it and your limited company can continue trading, even those creditors that did not vote (by choice or no notice) have to act within this arrangement.   Therefore, no unsecured creditors are able to take legal action against your organisation outside the CVA.

It is certainly one of the most flexible insolvency methods available as, apart from the procedure and content of your proposal, which are both dictated by law, the rest of this arrangement is determined by the company, with the hope that the creditors will agree to it. 

Unlike other procedures which may be considered, this has no effect on employee contracts so jobs can be saved, unless redundancies are a necessary part of the procedure, for example, during a restructure.

The arrangement will usually last over a period of 3-5 years and is closely monitored by a licensed insolvency practitioner who acts as a supervisor to the arrangement.  The time agreed on will help the business to repay all or some of its debts whilst still trading and remaining under the management of its own directors. 

How Much Does a CVA Cost?

A CVA can only be granted through an insolvency practitioner who not only charge for the application process but also the administration process.  It is difficult to say exactly how much the Company Voluntary Arrangement will cost as each case is unique and varies depending on total number of creditors, employees, position of the bank and what level of negotiation is needed. 

There are many people involved within the arrangement, and that does mean that a lot of communication needs to take place between not only to the company and its creditors but also the company’s stakeholders.  Like many other insolvency procedures, the sooner the ball is rolling the easier, and cheaper, the case can be to handle.  Professional insolvency practitioners can give you an idea of cost once they fully understand your company’s financial position.

Pros and Cons of a Company Voluntary Arrangement

Pros

·         Can improve cash flow within a short amount of time

·         Pressure from tax, VAT and PAYE is lifted whilst the agreement is being prepared

·         Company remains operational as a separate legal entity and managed by its existing team

·         Business contracts, accreditations and licenses are likely to be unaffected

Cons

·         It is possible that there may be disagreements over the proposed CVA between directors.

·         If a single creditor makes up a large percentage of the company’s debt, then they have a strong position to negotiate deals on their terms

·         It will have a negative effect on company’s credit rating and obtaining future credit may be an issue well after the arrangement has ended.

·         The arrangement does not legally bind secured lenders, so they can still take legal action.

CVA Process in the UK

The application process for a CVA in the UK can only begin if all the directors or members agree and this must be done with an insolvency practitioner.  The insolvency practitioner will then start to work out a plan and arrangement as to how much debt the company can pay back and a payment schedule to ensure this is achieved.  This must be completed within a month of being appointed to supervise the CVA.

One the arrangement has been written up, the insolvency practitioner will write to all creditors and provide necessary information and invite them to vote on it.  As mentioned earlier, for the Company Voluntary Arrangement in Cole Henley to be granted, it must be approved by creditors who are owed at least 75% of the debt.  If this cannot be achieved, then the company may face voluntary liquidation, whereby its assets are used to pay off its debts, the business will stop trading and will be removed from the companies register at Companies House.

If the voting is successful and works in the company’s favour, then the scheduled payments must be made to the creditors via the insolvency practitioner over a set amount of time and until the agreed amount is paid off.

Get In Touch

We cover Cole Henley (Hampshire)

Get in touch

We aim to get back to you in 1 working day.


Skip to

Gallery

Other locations available for company voluntary arrangement cole henley
Bitterne Park Greatham Waltham Chase Wittensford Monxton Fullerton Latchmere Green Highbury The Close Hedge End Monk Sherborne Southsea Hound Green Over Wallop Hangersley Sarisbury Swanmore Liphook Row Ash East Tisted Woodend Sleepers' Hill Midanbury Overton Hilsea Tangley Eastleigh Headley Down Old Portsmouth Owslebury The Frenches North Houghton Compton Locks Heath Barton Stacey Hungerford Southampton Polygon Aldershot Cove Landport Weston Oliver's Battery Hythe Bramley Green Amport East Cholderton Brown Candover Portswood Calshot Cuckoo Bushes Penton Mewsey Dilton Murrell Green Daneshill Highclere Poulner Tunworth Monkwood Brockhampton Cheriton Fordingbridge Martin Drove End Newtown Lower Green Shortheath Glebe Birchy Hill West Heath Hook Park Estate Fair Oak Mead End Wilsom Mill Green Battramsley Stratfield Saye Ramridge Park Critchell's Green Meonstoke Hook Hollington Cross Cadnam Toothill Quidhampton Upper Farringdon Custards Basingstoke Rockbourne Anchorage Park Upper Canterton Hammer Bottom Tiptoe Bransbury Denvilles Finchdean Egbury Springvale Swanwick Moulsham Green Lower Swanwick Mislingford Farnborough Green Corhampton Winsor Arford Northfields Laverstoke Pheonix Green Allbrook Golden Pot Lower Turmer Warsash Hillyfields The Butts Merry Oak Emery Down Weavers Down Regents Park Woodington Stoke Eversley Cross Abbotts Barton Bramshill Dogmersfield Whitsbury North Charford Blackwater Newtown Common Furzley Wheatley Tot Hill Port Solent Sherfield English Warborne Bidden Maybush Bighton Rotherwick Rushington Abbotts Ann Four Marks Viables Whale Island Damerham Boorley Green Pucknall Picket Post Avington Woodfalls Lower Common Bucks Horn Oak Fleet Tichborne Shedfield Lower Buckland Knights Enham Wintershill Waterditch South Ham Lower Common Wymering Fulflood Valley Park Fisher's Pond Lord's Wood West Worldham Crookham Village Shalden Green Halterworth Clanfield Portchester Upper Wootton Eling Canada Lord's Hill Shirley Park Froxfield Green Westfield Fox Lane Holt End Newtown Buriton Bickton Portmore Racedown Hipley Rotten Green Brockhurst Abshot Fleetend Upper Enham West End Stamshaw Ashe Warren Newtown Southwood Axmansford Heathfield Knowle West Meon Whitway Soake Burghclere Common Fratton North Gorley Beauworth Bellevue Southwick Upton Empshott Hearn Hoe Gore End Frenchmoor Vernham Bank Chilbolton Down Spearywell Durns Town Lower Canterton Upham Milton Popley Fritham Bisterne Pardown Old Shirley Lower Pennington Ridgeway Parade Mullenspond Highcliffe Montgomery Lines Newbridge Little London Little London North Town Lee-on-the-Solent Baughurst Common Curbridge North Waltham Newtown Tote Hill East Hill Lynch Hill Hazeley Heath Ripley Lower Upham Smannell Chilbolton Middle Wallop Bevois Valley Tilly Down Farlington Ropley Wadwick Houndmills Dora's Green Grateley Worthy Down Cliddesden Park Corner Hill Brow Kent Kimbridge Hounsdown Chandler's Ford Picket Hill East Martin Wheat Hold Bramshott Copnor Soberton Hill Park Canada Common Stonymarsh Burkham Hursley Penton Corner Binley Romsey Lower Green Nutburn Thruxton Compton Langstone Horris Hill Paulsgrove Braishfield Shorley Durley Martin Lower Daggons Tadley Tadley Bottom Hawley Lane Colden Common Newtown Old Burghclere Redenham Widley Clanville Lower Ratley Harestock Malshanger Highfield Heath End Ibsley Fair Oak Green Hyde Somers Town Brown Heath Compton End Warblington Leckford Bowling Alley Steventon Kentsboro South View Bedford Place Old Netley Fareham Thorney Hill Blackfield Penwood Little Holbury Woodcott Nursling Pondtail Hawley Popham Townhill Park Moortown Liss Forest Hook Park Ewshot Herriard Phoenix Green Vernham Row Itchen Abbas Brickhill Andover East Oakley Preston Candover Weyhill Chilcomb Dunbridge Sholing Common North Street Woolston Dunley Mengham Swaythling Oakshott Stoney Cross Littleton Anstey Chandlers Green Wolverton Common Kempshott Furzeley Corner Fair Oak Hill Grove Andover Down Brighton Hill Steep Micheldever Brokenford Fyfield West Stratton Crowdhill Townsend Grayshott Broadgate Brockenhurst Peel Common Blashford Aldermoor Deane Westley North End Wootton Horsebridge Mount Pleasant Goose Hill Buckskin Banister's Park South Farnborough Buddle Gable Head Cuckoo's Corner Powntley Copse Farnborough Ibthorpe Hordle Ellisfield Browninghill Green Ellingham Hollywater Bishop's Green Privett Shirley Warren Crow Wellow Wood North Poulner Farnborough Park Burley Beacon Ball Hill Winnall Shirrell Heath Kingsmead Tapnage Sydmonton North Camp Ringwood Breamore Upper Pennington Kitwood Portsea Ann's Hill Ramsdell Kingsley Burley Lawn Picket Piece Hartley Mauditt Dummer Wootton St Lawrence Woodside Linwood Bishopstoke East End Crookhorn Warnford Bordon Bailey's Hard Martyr Worthy Portsea Island Petersfield Brook Newtown Quarley Bevois Mount Bleak Hill Durley Street Three Ashes Michelmersh Meon Wyck The Hummicks Thedden Hatch Whitehill Hattingley Weston Colley Holbury Mellishes Bottom Hawkley Harbridge Green Foxhall The Holdings Bassett Furze Hill Foulford Silchester Nob's Crook Catherington Beckley Allum Green Furzey Lodge Stony Heath Woodlands Foxcotte Shirley North Fareham Kingsclere Peartree Green Timsbury Tinkers Cross Newtown Upper Swanmore Swarraton Newton Valence Turmer West Leigh Droxford South Hayling Bramshaw Hampton Park North Oakley Pooksgreen Winslade Bentworth Dipley South Gorley Street End Ropley Dean Norleywood Shootash North End Hartfordbridge West Liss Calmore Southrope Coombe Little Posbrook Marchwood Long Sutton Bisterne Close Walton Heath Ashford Hill Pamber End Nutley Warren Corner Charlton Southend Bridgemary Dundridge Frithend Downton North End Bucklers Hard Pennington Church End Woolton Hill Nether Wallop Whitenap Barford Oakhanger Barton on Sea Sea View Crondall Otterbourne Hunton Lyde Green Water End Cupernham Newtown Hambledon Keeping Pilley West Dean St Cross Court Corner Stockbridge Bagmore New Alresford Mill Lane East Anton Tye Up Nately East End Baughurst Egypt Ogdens Upper Burgate Cottonworth Hatchet Gate North Warnborough Kilmeston Wishanger Common Shirley holms Stonehills Fleetlands Little Basing Bradley Ropley Soke Danebury Hightown Godshill Wood Oakley Newton Stacey Hook East Dean Easton Colbury Hawthorn Palestine Harbridge Prince's Marsh Pamber Heath Pound Street Hill Top Roughdown Wallington Wigley Freefolk Wivelrod Burgates Church Oakley Spitalhatch Crosshouse Ossemsley Bedenham Funtley Forton Frogmore Neacroft Faccombe Leagreen Selsmore West Common Redbrook Dean Hillpound Ladwell Fleet Abbots Worthy Bar End Newgrounds Heather Row Mount Pleasant Anthill Common Griggs Green Stratfield Turgis Upton Grey Bransgore Forest Corner Up Green Anna Valley Goose Green Sandleheath Stanswood South Warnborough The Withies Rowlands Castle Lynch Criddlestyle Old Basing Cricket Hill Newtown Ower Deadwater Duck Street Hatch Bottom Red Rice Park Gate Nashes Green Cole Henley Lower Bordean Cosham Bossington Nichols Town Shipton Bellinger Blackhill North Ripley St Mary Bourne West Heath Yateley Drayton Newtown Highways Hundred Acres Oakridge Sladen Green Wildmoor East Boldre Winchfield North Baddesley Tadley Hill Wolverton Morestead Coxford Privett Plastow Green Broadmere Gunville Bramley Corner West Ham Adbury Kingston Park Pikeshill Headbourne Worthy Upper Slackstead Weston Hardley Vernham Dean Hound Catisfield Dibden Purlieu Furzedown Botley Northbrook Little Shoddesden Appleshaw Elvetham Sandford Hartley Wespall East Woodhay East Aston Gobley Hole Lyndhurst Lane End Earlstone Common Lovedean Hill Head Minstead Hightown Farnborough Street Rownhams Bentley Blounce Millbrook Longparish Crux Easton Wimble Hill Stanmore Purbrook West Green Bull Hill Upper Common Charlwood Netley Little Somborne West Hill Bitterne Farleigh Wallop Nately Scures West Meon Woodlands Applemore Worting Hatch Warren Broughton North Sydmonton Pilley Bailey Rowner Wickham Common Wickham Ashley Purbrook Heath Minley Kingsclere Woodlands New Milton Winchester Swampton Frogham Weston Patrick Mockbeggar Black Dam Gritnam Holt St John's Church Rafborough Hazeley Lea Segensworth Greywell South Town West Wellow Bagnum Hollington Chalton North Street Stroud Mapledurwell Bashley Park North Stoneham Harefield Conford Milford on Sea Woodmancott Hazeley Horndean Chidden The Common Itchen Stoke East Wellow Harefield Spanish Green Kingston Causeway Fair Cross Kings Worthy New Town Crampmoor Wildern Neatham Newnham Bevois Town Stakes Outwick Upper Shirley Ashe Upper Wield Badger Farm New Brighton Balmerlawn Bishop's Sutton Hannington Rockford Lopcombe East Stratton Ampfield Summerlug Gundleton Woodgreen Newtown Baybridge Blissford Cufaude Titchfield Park Heckfield Ramsdean Hatt Hill Brook Hill Hinton Ampner Sandy Down Netley Hill Crawley Empshott Green Bank Hatherden Buckland Broad Layings Bowyer's Common Netley Marsh Kent's Oak Buckland Pound Green North Hayling Sholing Broad Oak Warren Corner Lordswood Keyhaven Crockerhill Boyatt Wood Darby Green Cowplain Battramsley Cross Wharf Hill Totton West End Leigh Park Bramdean East Meon Up Somborne Soberton Heath London Minstead Bulbery Hammond's Green Foxdown Elson Whiteley Thornhill Park King's Somborne Charter Alley Eastland Gate West End Green Hocombe Chineham Inhurst Bashley Heathfield Turkey Island Ashmansworth Blacknest Sutton Scotney North Weirs Andwell Curdridge Warnborough Green Southington Axford Anmore South Weirs South Wonston Enham Alamein Lindford Goodworth Clatford Filmore Hill Ragged Appleshaw Little Hoddington Hiltingbury North Kingston Shobley West Tisted Bitterne Manor Redbridge Bartley Pamber Green Turgis Green Horton Heath Brock's Green Whitchurch Hale Pitt Elvetham Heath Exbury Boldre Sopley Ratlake Sherfield on Loddon The Soke Upper Bullington Couch Green Drayton Well Stony Batter Lower Slackstead Gilbert Street Old Alresford Burley Street The Mint Hinton Lockerley Belbins Langrish Hoe Gate Lee Ground Clayhall Lymore St Austins South Baddesley Hillstreet Vernham Street New Cheriton Ashford Hyde Tufton Winklebury Titchfield Hatchet Green Alton Otterwood Woodlands Salters Heath Woodley Westwood Park West Tytherley West Town Wherwell Ashton Upton Denmead St Mary's Abbotswood Old Milton Alverstoke Ashley Potbridge West End Titchfield Common Stone Wecock Burley Upper Street Ashlett Woodcot Eastrop Lowford Isington Hartley Wintney Kimpton Upper Froyle Stoke Downend Carter's Clay Rye Common Lymington Durrants Testwood Little Down Hazeley Bottom Newtown Sparsholt Walhampton Kingsland Place Standon Cocksford Down Chawton Camdentown Linford Middleton Weeke Longstock Knapp Godshill Burridge Avon Sandy Balls Hensting East Liss Bassett Green Mattingley Portsmouth Steep Marsh Beaulieu Northbrook Awbridge Liss Bunstead Rake Common Swelling Hill Little Ann Bailey Green Ashfield Abbotstone Fairdown Tipner Woodside Bishop's Waltham Sheet Eversley Centre Redlands Odiham Standford Worlds End Stoke Charity Blackmoor Foxhills Lower Bullington Gilbury Hard Shamblehurst Ashurst Holt Pound Chapel Eastoke Frogmore Ower Stoke Common Seafield The Hangers Wimpson Selborne Soldridge Hamble-le-Rice Bursledon Frost Hill Flood Street Waterlooville Winchfield Hurst Setley Brockbridge Netherton Eastney Stockheath Ridge Common St Giles's Hill Baffins Brambridge Lower Wield North Boarhunt Fawley Godwinscroft Medstead Dowd's Farm Boarhunt Langley Colemore Hillhead Sprat's Down Thorns Beach Wildhern Great Shoddesden Sway Everton Thornhill Stuckton Hurstbourne Tarrant Havant Fryern Hill Butlocks Heath Chilworth Old Village Clatford Oakcuts Mortimer West End Lee Tidpit Sleaford Church Crookham East Tytherley Headley Beech Hill Burghclere Holybourne Freemantle Hurstbourne Priors Northney Polhampton Sherborne St John St Denys Cold Ash Hill East Worldham Bramley Colt Hill Stonyford Clarken Green Litchfield Kings Furlong Stoner Hill Twyford Ashurst Bridge Shawford Lower Brook Lower Exbury Lasham Silkstead Bucket Corner Totford Upper Ratley Itchen North End Headley Wonston Horseport Ibworth Northington Penton Grafton Exton Dibden Beech Lower Burgate Binsted Shalden Bedhampton Buttsash Frostlane Lower Farringdon Ocean Village Gosport Upper Clatford Bramshott Chase Copythorne South Down Weston Corbett Chilworth Oak Hill Mottisfont Ovington Upper Kingston Dean Plaitford Green Northam Heath End Houghton Stubbington Brook Emsworth Passfield Blendworth Highbridge Hill Chilton Candover High Cross Ecchinswell Forton Linkenholt Newfound Lower Froyle Lepe