Joint Supervisors of Company Voluntary Arrangement (CVA) of Civil Engineering Company

Company Voluntary Arrangement (CVA)

| November 3rd 2021

More Case Studies by Gary Lee

Updated: 3rd November 2021

Joint Supervisors of Company Voluntary Arrangement (CVA) of Civil Engineering Company

Background

The limited company traded profitably as civil engineers since its incorporation, however, it arrived at a crossroads after accumulating an unexpected bad debt.

Work Undertaken

A large unrecoverable debt had a dramatic adverse effect on the cash flow of the company and its ability to fulfil liabilities, resulting in the company becoming contingently insolvent.

As the business no longer had enough funds to pay creditors, immense pressure was placed on the company to make repayment. Without professional guidance, the business was at high risk of facing legal action in the form of a winding up petition, resulting in compulsory liquidation.

Under professional recommendation, the company entered a Company Voluntary Arrangement (CVA) as the best course of action to allow additional time for the debts of the company to be repaid.

During the implementation of the CVA, multiple modifications to the arrangement were proposed by several creditors which involved appointing two members of our team to act as Joint Supervisors of the CVA.

Outcome

Although we would ordinarily deal with a CVA from the outset, requests from creditors resulted in our appointment where another Insolvency Practitioner firm would have naturally expected appointment.

We supervised the CVA procedure from the date of approval and oversaw the collection of monthly contributions & agreement of creditor claims.


About the author

Gary Lee

Partner

Meet our Team of Experts

Gary is a Fellow of the Institute of Chartered Accountants in England and Wales and a Licensed Insolvency Practitioner with over 20 years experience in the profession.

He has worked extensively with Banks, Asset Based Lenders & Private Equity on mid market & SME assignments. He has a broad range of experience gained through a variety of assignments, working on formal insolvency appointments, informal workouts, debt negotiations and independent business reviews.

116 Regional UK Offices

Find your local Begbies Traynor Group office and speak to an adviser today.

Find your Local Office
0800 063 9221

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0800 464 0871

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
0161 837 1700

Call our Confidential Advice Line. Calls to this number are free of charge.

Call us now...
Request a Meeting

We invite you to come and discuss your enquiry with us at your convenience.

Request a meeting...
Begbies Traynor Group plc, announces that it has completed the acquisition of CVR Global LLP
CVR is a leading independent firm of insolvency practitioners, forensic accountants and experts in other related complementary disciplines.
Read More →
 
Coronavirus pushes financially distressed companies over the half-million mark
Number of businesses in significant distress stands at 509,000 – the highest number measured by the Red Flag Alert research
Read More →
 
BTG Advisory accelerates growth with appointment of four new partners to its London office
BTG Advisory, the boutique advisory arm of Begbies Traynor Group announces the appointment of four new partners to its Canary Wharf office
Read More →
 
Eighty jobs saved with £1m sale of engineering business
South Yorkshire company Newburgh Precision rescued through administration
Sale enables 75-year-old business to continue trading
Read More →
 
Join thousands of professionals by signing up for our updates
Analysis and Opinion from our Partners
Top Industry News
Register Now →
 

Advice you can trust

We are accredited by the following industry leading organisations

Insolvency Practitioners Association Institute of Chartered Accountants in England and Wales R3: Association of Business Recovery Professionals ICAEW Business Advice Service Turnaround Management Association ICAS | The Institute of Chartered Accountants of Scotland

Contact the Begbies Traynor Group team

or Find your Nearest Office

Here at Begbies Traynor Group we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY

Processing...

This site uses cookies to monitor site performance and provide a more responsive and personalised experience. You must agree to our use of certain cookies. For more information on how we use and manage cookies please read our PRIVACY POLICY