When Would my company consider using an old type Company Voluntary Arrangement?

This the first type of CVA does not freeze creditors actions in the period of 3 - 4 weeks up to the creditors meeting

This question can be answered in the negative. If your business is not subject to an imminent threat (in the relatively short period leading up to the Company Voluntary Arrangement creditors meeting [CVA]) such as:

• a winding up petition

• or the threat of receivership

• or the threat of distraint

• or a walking possession arrangement

• or repossession of goods by a financial company

• or landlords distraint

Then it is possible that the first & older type of Company Voluntary Arrangement (CVA) may be sufficient to achieve the rescue of your company as the extra protection of a freeze on creditors actions in the short period leading up to the creditors meeting is not needed.

Directors who want "safety first" may, however, wish to apply for the newer type of CVA to obtain the absolute protection of a moratorium (freeze) on creditors actions in the short period leading up to the creditors meeting. Alternatively your company could be placed in administration to achieve the same objective.