One of the most important aspects of a CVA is the fact that your secured creditors must agree the terms of a CVA. However, it doesn’t stop there because there must be a consensus of at least 75 percent in terms of value, not creditor numbers.
Quite often your largest debt is to the taxman so you can see how HMRC would play such an important role! It stands to reason that if you are having trouble paying suppliers, rent and even payroll, you are probably late on PAYE and NIC as well!
The thing working in your favour is that government wants to get paid but they also recognise the value of keeping UK businesses afloat. This keeps workers in jobs and helps to stabilise the economy. We have successfully negotiated with HMRC so that they agree the terms of the CVA in most cases, sometimes with minor adjustments.
It is especially important to choose your Insolvency Practitioner wisely because under some conditions, a creditor can apply to have the court agreed CVA revoked, or at the very least revised. Usually this is in terms of some irregularity in meetings or that said creditor feels as though they have been unfairly prejudiced within the agreed CVA.
We will never endeavour to recommend recovery options without your full comprehension because your understanding is a vital part of the business rescue process.
Experienced IPs such as Real Business Rescue know that any secured creditor who was entitled to be a party to the CVA can (and will!) challenge what they consider to be an unfair CVA. Amongst many other reasons for carefully choosing an Insolvency Practitioner, this is of prime importance. Not only can the agreed CVA be overturned, but it will greatly delay any progress in terms of turning a distressed business around.
12th December 2018
Small and medium-sized enterprises (SMEs) across the UK are paying increasingly large sums of money to collect amounts owed to them by their clients and customers.Read More
4th December 2018
The number of independent retailers who closed down outlets during the first half of this year reached a record high level for any comparable period.Read More