If you are questioning the viability of your company and times are getting tough, you need professional advice aimed at helping you discover the right solution. Our experienced team are experts in handling all types of corporate insolvency issues. A long established practice with a sterling reputation, Springfields Advisory is a member of the Association of Business Recovery Professionals (R3) and the Association of Chartered Certified Accountants (ACCA). We can provide nationwide assistance with office based in Leicester, Derby and London.
COMPANY VOLUNTARY ARRANGEMENT (CVA)
A Company Voluntary Arrangement (CVA) is a formal agreement with creditors. For many struggling enterprises, a well-planned CVA is a lifesaver. Entering into a CVA will result in directors making a legally binding compromise to help the company keep trading.
The administration process creates a legal stay (or moratorium) against action by creditors. This can give companies time in which to develop further proposals aimed at satisfying creditors and returning the company to a position of viability. Since the Enterprise Act 2002, most court hearings can be avoided, making administration a more cost effective and accessible method.
Practical company liquidation advice
Unfortunately, in some instances recovering a business is simply not possible. Springfields Advisory will only advise on liquidation once all other strategies have been exhausted. Our team of licensed insolvency practitioners will provide detailed information on the options available. Please be advised that once the liquidation process has started it is highly unlikely that a business will continue trading.
Help with Creditors’ Voluntary Liquidation
A Creditors’ Voluntary Liquidation (CVL) is applicable only if a company is insolvent. When a company’s liabilities exceed its assets, the company can no longer pay its debts or the company ceases to trade then a CVL may be the only way forward. In this scenario company directors and shareholders place the company into liquidation and creditors elect a Liquidator. The Liquidator will realise the assets of the company and distribute them to creditors, investigate past transactions and the director’s conduct. Directors can be held personally liable for liabilities incurred if trading continues after insolvency.
Is your company facing creditor pressure?
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