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Can the company be protected from an aggressive creditor while a CVA is proposed?
July 3, 2020Yes there are two methods: one relies on case law and the other is a formal moratorium. For a full explanation…
Read MoreCan the Company continue trading as usual while proposing a CVA to creditors?
July 3, 2020Company directors are required to act in the interests of creditors in the event that their company becomes insolvent. If continuing…
Read MoreHow is a CVA approved?
July 3, 202075% of unsecured creditors by value must approve a CVA. This is 75% voting on the day. 50% of non-associated creditors…
Read MoreWhat are the alternatives to entering into a CVA?
July 3, 2020Although a CVA is usually the best option for a viable but insolvent company, it isn’t the only option. Common alternatives…
Read MoreWhat if creditors cannot be repaid in full from the CVA?
July 3, 2020It is usual that a percentage of the pre-CVA debt is repaid and this is part of the proposal put to…
Read MoreAre current creditors frozen during a CVA?
July 3, 2020Yes. Once the CVA is in place no enforcement action can be taken by pre-CVA creditors. Post-CVA creditors must be paid…
Read MoreWhat happens during a CVA?
July 3, 2020Usually monthly contributions are made into the CVA, which can be distributed to creditors on a regular basis. The Company can…
Read MoreWhat is a CVA?
July 3, 2020A CVA is a legally binding agreement (“the proposal”) with your company’s creditors to allow a proportion of its debts to…
Read MoreWhat is a Moratorium?
July 3, 2020A moratorium allows directors to continue to run a Company under the supervision of a Licensed Insolvency Practitioner, the ‘Monitor’, subject…
Read MoreI am concerned about the conduct of the director prior to the insolvency process, what should I do?
June 30, 2020When an insolvency practitioner is appointed liquidator of an insolvent Company, administrator or an administrative receiver, they have a duty to…
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