A Company CVA is a legally binding agreement between a company and its unsecured creditors for them to be repaid a proportion of what they are owed spread out over a period of time which can be for as long as 5 years. How much the company will have to repay will depend on the company’s financial position and its future cash flow expectations.
At the end of the CVA process, any unpaid debts are written off. Therefore the company will be in a very strong financial position as it will be debt free.
Whilst the company is in the CVA the directors continue to run the business as they did before. Usually their only obligation is to make the periodic payments into the CVA.
The CVA is run by a licenced insolvency practitioner who is referred to as the CVA Supervisor. This will be someone who works for our company.