With the House of Fraser case hitting the headlines in recent weeks and many UK businesses struggling in the current economic climate, company voluntary arrangements (CVAs) are increasingly mentioned in the press as a route out of a difficult financial situation.

Defined as a voluntary arrangement for a company whereby a plan of reorganisation or composition in satisfaction of its debts is put forward to creditors and shareholders, in CVAs there is limited involvement by the court and the arrangement drawn up by a licensed insolvency practitioner, like Walsh Taylor, and agreed by 75% of the Company’s creditors.

In terms of how a CVA can assist with debt relief, though you cannot achieve complete debt forgiveness with your creditors, it may be possible to reduce the total repayment down to a figure that is achievable over a fixed period of time. If your business owes a large amount to its creditors, for example, then a CVA could be advantageous as it could enable the debt to be restructured and a fixed amount paid back over an achievable period of time. This can assist the Company with its cashflow.

It is also worth noting that not all companies are able to put forward a CVA proposal to their creditors. There are certain conditions that must be met, which include the Company needing to be insolvent on a balance sheet or cash flow basis, there must be a realistic prospect of repayment to its creditors, the CVA must be commercially viable and there must be a clear outline as to why the CVA would be of benefit to the creditors of the Company.

Should the above criteria be met and the CVA approved by the creditors the Company must at all times strive to achieve to meet the terms of the CVA, however if circumstances arose that affects the ability to meet these, the Company must seek to contact their insolvency practitioner to find a workable way forward.

Ultimately, as with most commercial financial pressures, acting quickly and seeking help is extremely important to enable the Company to ensure they have as many options available to them to go forward with their business.

For more information on our business support services and how they can be of assistance in Leeds, Bradford, Harrogate or the North East, please call 03300 244 660.

Mary Taylor

Mary began working in insolvency for a national accountancy practice in Glasgow thirty years ago and worked in most divisions of the insolvency department.

She then moved to a smaller firm so she could advance her knowledge on a more hands on basis. She moved back to Leeds in 1987 and commenced working with a small firm of accountants and subsequently made partner.

She left in 1999 to set up her own practice, McCann Taylor.
McCann Taylor became involved with the consumer market both in England and Scotland.

Mary sold McCann Taylor in March 2007 and formed Walsh Taylor to concentrate on helping businesses experiencing financial difficulties.

Meg Heath

Meg has a background in supporting SMEs, including the raising of finance and advising on organisational change. She is a non-executive director of companies in the private and third sector, including Walsh Taylor.

Previously she was Deputy Fund Director of one of the largest CDFIs in the UK, and has experience of the social enterprise, charity and private sectors. Her experience of assisting companies to survive and thrive has been gained across a broad range of sectors and in companies of all sizes.

In addition to her work at Walsh Taylor she works for other private companies, including non-executive and trustee positions.

Emma Mifsud
Insolvency Practitioner

After graduating from Leeds University in 2005 with a BA Hons degree in Criminology, Emma worked for a regional law firm in both the property department and insolvency and banking department. Whilst doing so Emma gained a Graduate Diploma in Law at BPP University.

Emma then joined a national accountancy firm in 2009 gaining experience in personal insolvency before moving to a Leeds based firm. At this firm Emma specialised in bankruptcies, IVA’s and negotiating informal agreements with creditors. In 2013 Emma gained her CPI qualification.

Since joining the firm in December 2013, Emma has taken on a portfolio of personal and corporate insolvency cases to extend her knowledge and expertise in all areas of insolvency.

In December 2017 Emma become a licensed appointment taker under the Insolvency Practitioners Association, she is JIEB qualified.

Walsh Taylor Finding workable solutions for your financial problems
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