Company Voluntary Arrangement
A company voluntary arrangement is a recognised legal procedure, under
the provisions of the Insolvency Act of 1986 that enable a company to
enter into a binding agreement with its creditors detailing how the
company's debts and liabilities will be dealt with, and allows the
directors to retain the control of the company.
In essence a company voluntary arrangement allows a company with
historical cash flow problems to repay its liabilities, either in part
or in full (including the Inland Revenue and VAT) over a period of time.
Once the company's liabilities have been restructured any monies
generated by the company e.g. book debts can be used as working capital
rather than paying its old debts.
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