Regional Business Information for Yorkshire
CVA changes given thumbs by region's insolvency practitioners
24th September 2009
By Anastasia Weiner - Business Correspondent, Yorkshire
YORKSHIRE insolvency practitioners are praising the decision to make it easier for businesses to renegotiate their debts through a Company Voluntary Arrangement (CVA).
In a survey by insolvency trade body R3, around three-quarters of insolvency practitioners in the region said all companies trying to agree a CVA should be givenb protection against creditors.
A CVA is where a company comes to an agreement with creditors to reorganise its debt. Currently only around 500 CVAs are completed each year.
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Have i got this right?, Companies can "protect" themselves from businesses who have provided them with services in good faith, get a massive discount, and start up again whilst their competitors strive to bat against this unfair advantage. When I was a boy this was called stealing.
Martyn Duffield
Uh no not quite, the idea is that this stops any particular creditor taking pre emptive action whilst a company seeks to rearrange its affairs or put proposals to creditors as to how it is going to settle its debts. The creditors can the vote on those proposals, as in JJB. Any sale would therefore have to be approved by creditors. See Andy Woods comments in the last 2 paras.
Jim James