CBA Insolvency Practitioners

Business Recovery

The primary objective for CBA is to put you on the road to recovery. Outlined below are the three main mechanisms to continue trading. However in order to give you the best possible advice, for your particular circumstances, please contact us to make use of our knowledge and experience with a free consultation.

Informal arrangement

As the title suggest the company could consider writing to all its creditors to see if a mutually acceptable agreement can be reached regarding payments. It is advisable to include a timetable of when payments will be made.

Company voluntary arrangement (CVA)

This is a formal, legally binding, version of the arrangement described above.

The directors, with our assistance, need to prepare proposals to deal with the company’s debt over a period of time. These proposals are lodged in Court and voted upon by creditors and if 75% of creditors by value who vote accept the proposals then they are approved, and all other creditors are also bound by the terms of the proposals.

The CVA is supervised by a Licensed Insolvency Practitioner whose job is to monitor the arrangement to ensure that the company complies with its terms, collect the funds due in to the CVA, agree the claims of creditors and distribute the funds to them.

Administration

This is a protective procedure whereby a Licensed Insolvency Practitioner is appointed Administrator. During Administration nobody may take any legal action against the company, providing the company with ‘breathing space’ from this pressure, which allows the affairs to be managed in a controlled and orderly fashion.

Once in control of the business the administrator can continue to trade the business whilst restructuring it, sell the business as a going concern, propose that the company enters a CVA or cease trading and sell the assets.

First Step

If you have concerns about your business do not hesitate to contact us for free professional advice. The sooner you act the more options you may have.