27 March 2020: We are dealing with a Company Voluntary Arrangement (“CVA”) and are holding significant funds due to be distributed in the future to the creditors in this instance.
A CVA is a contractual agreement with creditors with numerous terms and conditions attached. The major creditor in this matter is HMRC, whose claim is greater than 75% of the overall liabilities. Generally you would need to deal with any formal variations of the CVA. However, in this instance, we have verbally varied the arrangement and are arranging a very urgent and much needed payment of £250,000.
There will be many CVAs and even more Individual Voluntary Arrangements (“IVA”) in existence and we would urge all Insolvency Practitioners to review them to see if funds can be paid out early to creditors whereby cash is better in the creditors’ bank account at this unprecedented time.