An often overlooked option for directors of a struggling company is the Corporate Voluntary Arrangement or CVA.
This is very powerful and effective arrangement which enables a board to freeze liabilities at any point in time and continue to trade the business under their own control, not that of an administrator. The scope of a CVA is huge and limited only by the imagination of the board. The company could repay creditors from future trading receipts, additional investment or from the sale of assets. Instructing an insolvency practitioner with a sound background in financial analysis is key to a successful CVA.