Business Recovery and Insolvency

When a business is facing financial difficulties, it can be a difficult and stressful time for the owners and stakeholders. At Mercian Accountants, we understand the challenges businesses face and have extensive experience in helping businesses recover from financial difficulties through our business recovery and insolvency solutions.

Table of Contents

CVA (Company Voluntary Arrangement)

A CVA is a legally binding agreement between a company and its creditors, which allows the company to repay its debts over an agreed period of time, usually 3-5 years. A CVA is an effective solution for businesses that are in financial distress but have the potential to recover, and it provides a chance for the company to restructure its operations and return to profitability.

IVA (Individual Voluntary Arrangement)

An IVA is a legally binding agreement between an individual and their creditors, which allows the individual to repay their debts over an agreed period of time, usually 5 years. An IVA can be an effective solution for individuals who are struggling to repay their debts and are looking for a more structured way of doing so.

MVL (Members’ Voluntary Liquidation)

An MVL is a process of liquidating a solvent company, where the company’s assets are sold, and the proceeds are distributed among the creditors and shareholders. MVL is an option for companies that are no longer viable and the owners wish to wind up the company in an orderly manner.

CVL (Creditors’ Voluntary Liquidation)

A CVL is a process of liquidating an insolvent company, where the company’s assets are sold, and the proceeds are distributed among the creditors. CVL is an option for companies that are unable to pay their debts and are facing pressure from creditors to liquidate.

Administration

Administration is a process where a company is placed under the control of an administrator, who is appointed to manage the affairs of the company, with the aim of either rescuing the company or realising its assets for the benefit of creditors.

Pre-pack

A pre-pack is a process where the sale of a business or its assets is agreed before it is placed into administration. The pre-pack allows for a quick sale, avoiding the negative impact of a formal insolvency process on the company’s reputation and preserving the value of the business.

At Mercian Accountants, our experienced and qualified professionals are here to help you navigate the complexities of business recovery and insolvency. Whether you need advice on a CVA, IVA, MVL, CVL, administration, or pre-pack, we can provide you with the guidance and support you need to help your business recover and succeed.