A corporate voluntary arrangement, also known as a Company Voluntary Arrangement is all about getting an agreement. Everybody prefers to agree to something rather than argue. This is especially true if agreeing is in your interest. That’s why a corporate voluntary arrangement works.
If your cash flow has taken a battering and the bills just aren’t going down then a corporate voluntary arrangement may be just what the doctor ordered.
A recycling company in Liverpool recently had a corporate voluntary arrangement approved for over 4 million pounds with 90% of the creditors approving the move.
If your company’s creditors are persuaded to accept a payment of 30 pence in the pound over a five year period compared to nothing, if the company was to go into liquidation, then you could easily imagine that they would agree to support your company. It’s all a matter of providing a logical solution.