Lee Manning, partner at ReSolve explains the pros and cons of a negotiated restructuring with key creditors through a company voluntary arrangement (CVA) for businesses that have been severely impacted by the pandemic
Many, if not all, of us are eager to see the end of covid-19 so that our lives, both professional and personal, can return to normal. However, in the rush to get back into the swing of things, it is important to not be hasty with our actions as they can lead to unplanned outcomes or lost opportunities
This certainly applies to a business that is still suffering from the pandemic’s impact to its trade. Business owners facing financial challenges have several options but the two that have been most-often championed during covid-19 have been undertaking a CVA and entering alternative insolvency processes.
In some cases, business owners who have been badly impacted by covid-19 might choose whichever is the ‘quickest’ solution to stem the negative drain on their company’s resources.
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