CVA procedure

  • An essential first step is to appoint a licensed Insolvency Practitioner to act as “Nominee”
  • The Nominee spends time getting to know and understand your business and helps you put together a proposal to tackle your financial problems.  This will include a profit and loss and cashflow forecast demonstrating that your business can achieve the repayment plan proposed
  • The Nominee writes a report for creditors confirming that he/she has reviewed the proposal and believes it has a realistic chance of success
  • All these documents are lodged with the Court
  • Creditors are invited to a meeting to decide if they wish to accept the proposal
  • Over 75% of creditors who vote must vote in favour for the proposal to be accepted
  • If over 75% is achieved all creditors are bound by the terms of the CVA

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