Company Voluntary Arrangements

At Francis Wilks & Jones our team of expert lawyers have many years of experience in acting in company voluntary arrangements for all parties.

Can a company voluntary arrangement help me?

A company voluntary arrangement is a very useful tool for a company that is experiencing some problems in paying its creditors but at the same time has a viable ongoing business and has a good plan for recovery and company rescue in the short to medium term.

One of the great advantages of a company voluntary arrangement is that it binds all creditors owed money from the date that the company voluntary arrangement is signed and agreed.  This gives valuable breathing space to a company that is concerned that pressing creditors might bring winding up proceedings against the company before the company has had a chance to turnaround.

If you are a business owner of a company that has good prospects but is suffering some short-term cashflow problems, then a company voluntary arrangement could be a good option for you.

Our experience can help - but don’t delay

One thing we have learnt in our years of experience in dealing with company rescue situations is that the sooner you take expert advice, the more options are open to you, and this very much applies to company voluntary arrangements. Our experience has shown us that creditors are far more likely to agree to a reduction in the amount they will be paid, if they know that this is guaranteed under a company voluntary arrangement.  They are less likely to be cooperative if they have been chasing you for months and months only to be ignored.

It also makes sense that the earlier you act, the less debts you will have accrued to be negotiated in the company voluntary arrangement, making it less complicated and in turn, inevitably quicker and cheaper to administer.

A further benefit of a company voluntary arrangement is that the supervisor of the company voluntary arrangement deals with all the creditors under the arrangement, you simply provide one monthly payment to them, and they do the rest.  A supervisor is a professional insolvency practitioner, who deals with these situations as their bread and butter.

As part of a company voluntary arrangement you can often renegotiate with your creditors, including H M Revenue and Customs, and your landlord over rent arrears and ongoing lease obligations.

You may also be able to deal with employees under a company voluntary arrangement, without the usual redundancy problems and payments that ensue.

In a company voluntary arrangement, the directors remain in full control of the company.  It is not necessary to notify everyone that your company is in a company voluntary arrangement, so negative publicity is minimal.

Talk to our team

If you think that a company voluntary arrangement is something that could work well for your company, contact us to talk it through.  At Francis Wilks & Jones our expert team has many years of experience of acting with companies in company voluntary arrangements. We work with the best licensed insolvency practitioners in the country, and you can be confident that these professionals will deal with your matter at a high level. Contact our friendly team of experts at Francis Wilks & Jones today if you would like to discuss how to take this further.

Whatever your situation – we can help

Do speak to one of our friendly team of advisers for a confidential call on any of these issues if you think it will assist.  We have also set out below our answers to the common questions we get asked on this subject which we hope might also help you at this time. 

 


Common questions answered

1. Company voluntary arrangement explained

At Francis Wilks & Jones we often act for companies in a company voluntary arrangement. However what this means, both from the point of view of a company who wishes to use the company voluntary arrangement procedure, or for a creditor of a company that is under a company voluntary arrangement is often not clear to companies that have not previously been involved in the voluntary arrangement process. Company voluntary arrangement explained below provides some detail on what a voluntary arrangement means in practice for the parties concerned.

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2. What information do I need for a company voluntary arrangement?

For directors and shareholders of a company considering putting their company into a company voluntary arrangement as part of a business rescue plan, it is important to make sure that all information is produced so that the insolvency practitioner who is going to act as a nominee in the company voluntary arrangement can consider all of the information. We set out below the key information that is required if you are considering putting your company into a company voluntary arrangement.

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3. What happens if a company voluntary arrangement fails?

A company voluntary arrangement can be an extremely useful business restructuring tool for a company that is essentially viable but is concerned about current outstanding creditors and not being able to meet these immediately. However, what happens if the company voluntary arrangement fails and what are the options open to a company?

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4. What is a voluntary arrangement for a company?

Our team at Francis Wilks & Jones often acts for companies requiring a company voluntary arrangement but many people ask, what is a voluntary arrangement for a company? What this actually means both from the point of view of a company using the voluntary arrangement and for a creditor of a company under a company voluntary arrangement is often not entirely clear. Below we seek to explain what is a voluntary arrangement for a company and some of the key issues involved.

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5. How long does a company voluntary arrangement last?

We are frequently approached by directors of a company who ask whether a company voluntary arrangement is the right business recovery strategy for them to bring about a business turnaround for their company, leading to a successful company rescue of their business. At Francis Wilks & Jones we have a team of experts experienced in company voluntary arrangements and are happy to talk through the options with you for your business.

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6. Company voluntary arrangement

At Francis Wilks & Jones our team of business rescue experts are often approached by directors of a company to ask whether a company voluntary arrangement may be an effective business recovery strategy for them to bring about a company rescue. However, there is sometimes some confusion about what a company voluntary arrangement is. We set out below some of the key characteristics of a company voluntary arrangement.

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7. Voluntary arrangement

A business owner looking for a business recovery strategy as part of a business turnaround and company rescue, may have heard of a voluntary arrangement. A voluntary arrangement’s full title is a company voluntary arrangement. It can be a very effective business recovery tool if used properly as explained below.

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8. How do I put my company into a company voluntary arrangement?

A company voluntary arrangement can be a very useful business recovery tool to provide some much needed breathing space for a company, giving it time to bring about a company rescue. We set out below some detail of how a company voluntary arrangement is commenced.

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9. What rights do creditors have in a company voluntary arrangement?

A company voluntary arrangement can be a very effective business rescue tool for a company that has a viable business but is concerned about a build up of creditors requiring immediate payment. For creditors, a company voluntary arrangement can often provide a better return to them than waiting and hoping that the company will eventually repay them. We are often asked to explain what rights do creditors have under a company voluntary arrangement?

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10. Why do I need information for a company voluntary arrangement?

For directors and shareholders of a company considering putting their company into a company voluntary arrangement as part of a business rescue plan, it is important to make sure that all information is produced so that the insolvency practitioner who is going to act as the nominee in arrangement can consider all of the information to assess if the arrangement has a realistic prospect of success, and creditors can vote with all the information to hand. We set out below the key information that is required if you are considering putting your company into a company voluntary arrangement.

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