Businesses as well as individuals can benefit from voluntary arrangements. These are a protected agreement with your creditors set up by an Insolvency Practitioner like Bishop Fleming.
Voluntary Arrangements can be proposed by Companies, LLP’s and Partnerships. It is a formal but usually flexible financial arrangement dealing with all of the company debts, which can last up to five years. It is set up via an Insolvency Practitioner, the precise terms of which requires approval by your creditors. In our experience the bank is likely to play a crucial role if an Arrangement is to be approved. Come and talk to us.
A CVA route has been successfully used by companies and LLPs to trade through a financial crisis by paying off in part or in full old debt, without facing the terminal route of liquidation. Where a company can show that it has the leadership and a realistic financial plan that can offer to creditors significant recovery of a potential bad debt then we are able to support a CVA proposal and work with your creditors.
The advantage of this for you and your business is your creditors are just as bound as you are, so for the duration of the CVA, your business is protected; your creditors can’t back out of the arrangement or demand different terms once it’s been agreed.
A CVA is, in effect, a business tunnel – your business will be set on one path for a while, but will hopefully emerge from the other end healthy and able to continue trading as you were.
A PVA is very similar to a CVA route (see previous tab) but applies to a formal (non LLP) partnership situation. It is a rarely used route but come and talk to us.
It may be that a voluntary arrangement isn’t the right way to go for your business, or that you or one of your creditors have already taken you too far down another path. Even if this is the case, there’s plenty that Bishop Fleming can do to help.
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There are repercussions for users of Credit cards and gift cards where a retailer becomes insolvent. Sam Hawkins explains. Retailer insolvency has been on a noticeable increase recently with high profile cases such as Toys R Us and Maplin both entering Administration and New Look proposing a Voluntary Arrangement. When a large high street retailer […]