Services offered by Crown Debt
Company Voluntary Arrangement (CVA)
What is a company voluntary arrangement?
A company voluntary arrangement (CVA) is a debt solution for companies who are facing financial difficulties. It was introduced by the insolvency act 1986 as an insolvency service aimed to provide time needed in rescuing a company and/or at least, its business.
A company may have to enter a CVA if the debts accumulated are more than the company can afford to repay. In this case, the company directors will sign a legally binding agreement with the company creditors to compromise on the debt repayments. The company voluntary arrangement is an agreement by the company to repay debts in part or in full, to the creditors over a stated period of time.
Members' Voluntary Liquidation
What is members' voluntary liquidation?
Members' voluntary liquidation (MVL) is a type of an insolvency service and occurs when the shareholders of a company decide to voluntarily wind up a company and therefore that company ceases to operate. Any assets will either be distributed, or contributed towards any outstanding debts belonging to that company.
This winding up company process occurs when a solvent company decides to wind up and cease trading, but has enough money to pay everyone in full. The process involved in members voluntary liquidation is similar to that during insolvent liquidation, except the company directors will not be investigated.
Creditors' Voluntary Liquidation (CVL)
What is creditors' voluntary liquidation?
When a business has basically run its course, has no money or valuable assets to pay off debts owed and has no feasible avenue to continue trading, it may be necessary for creditors voluntary liquidation (CVL).
Creditors' voluntary liquidation means the company is being brought to an end, where assets will be turned into money which can then be dispersed among its creditors.
This is a quick and final solution to serious financial problems within a company which will see it brought to an end and cease trading.
There are many options available to companies in severe financial difficulties and creditor voluntary liquidation should really only be considered as the last option. This option should also only be considered if the company is insolvent, it has ceased to be viable, there is no need for the company's services or products and the directors believe the company is beyond rescue.
Administration Orders
What is an administration order?
Administration orders can be applied to individuals or companies and are granted by county courts. An administration order protects the individual or company against its creditors and is an alternative from going into liquidation (sometimes referred to as winding up).
Administration orders, in relation to a company, can be extremely useful because they can provide time and space while the company attempts to save or salvage part of a company. This could be done via a sale or through restructuring a business.
Administration orders were introduced by the insolvency act 1986 as a means of an insolvency service and/or liquidation help to protect companies and businesses that are facing financial difficulties.
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