CVAs are a contract between a corporate entity and its creditors to compromise present and future liabilities in stressed or distressed situations where no solvent solution is available. It is a form of business insolvency and must be overseen by a qualified insolvency practitioner, but whereby the directors remain in control of the business.
It must be demonstrated that the alternatives, e.g. administration, would deliver less value to creditors, but it is a process that enables a company to negotiate with its creditors, generate liquidity and maintain the business as a going concern.
What we do
CVAs are appropriate for entities with a viable underlying business whose survival is threatened by a build-up of certain structural liabilities or an unsustainable cost base (e.g. long-term property or other asset leases). Used appropriately, a CVA may be able to compromise those and rebalance the entity’s financial commitments in order to preserve it as a going concern. In recent years, most of the high-profile CVAs in the market have been put forward by operators in the following sectors where there has been a need to restructure the cost base and property footprint:
When you approach Interpath, we will assess the current position of your company and decide whether a CVA is appropriate. When considering this path, we take time to demonstrate that other insolvency options would deliver less value to creditors.
In order for this type of solution to be approved, creditors accounting for 75% or more of a company’s total debt value would need to agree to the CVA. Interpath has individuals across the UK who are qualified to support companies who believe this may be an option for them.
We stand shoulder to shoulder with you - we assist through the entire process, from assessing short-term liquidity through to transaction support and implementation.
We have market leading experience - our dedicated team work across a range of sectors and business sizes.
We have integrity and credibility - we have experience of dealing with a range of stakeholders holding divergent views and finding a consensual approach that ensures CVA proposals are approved.
We are flexible and practical in our approach - we take a practical and flexible approach that accounts for unique and evolving business circumstances.
We are CVA experts - our team have worked across an array of CVA engagements. We have seen the potential pitfalls first-hand and can help businesses navigate the process successfully.
Our people are a cut above the rest. We are a large, experienced team with deep technical insight and a passion for doing what’s right. For a full list of our senior people who can support you with this service solution, use the button below.
