In: CVA
Will the business lose access to credit after the CVA period?
July 3, 2020Entering into a CVA will negatively affect the company’s credit rating, but it doesn’t mean the company can never use credit…
Read MoreWhat happens to the business once the CVA is over?
July 3, 2020Once a company completes its CVA, it can continue trading as normal without its previous debts. If the company complied with…
Read MoreWe have big tax losses – will they be lost in a CVA?
July 3, 2020No. they can be used in future providing they are recognised losses.
Read MoreWhat happens to Personal Guarantees (PG’s) in a CVA?
July 3, 2020These are guarantees that cannot be removed until the debt is paid off. The longer term repayment to secured creditors should…
Read MoreCan a CVA be amended after it’s approved and implemented?
July 3, 2020If a company fails to achieve its objectives after entering into a CVA but still has a viable future, it may…
Read MoreHow long does a CVA typically last?
July 3, 2020The length of a CVA depends on each company’s financial situation and its ability to pay its creditors. Typically, CVAs last…
Read MoreWhat happens to the staff?
July 3, 2020It is likely that some employees will have to be made redundant as part of the process of restructuring and streamlining…
Read MoreA Bailiff or Sheriff has walking possession. If a CVA is proposed, what can be done about that?
July 3, 2020The best strategy would be to talk to them asserting that the assets are charged to secured creditors, if applicabe, and…
Read MoreHow will existing creditors react?
July 3, 2020Whilst it can be a worry that existing creditors will vote against the proposals, it is often within the best interests…
Read MoreIs it compulsory to tell new customers/clients that the Company is in a CVA?
July 3, 2020There is no statutory requirement for the Directors to advise their customers that the company has entered into a Company Voluntary…
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