KSA Group - Experts in Corporate Recovery

What do corporate recovery and turnaround practitioners do and how can they help my business?

At KSA Group we specialise in a mechanism of rescue called the company voluntary arrangement, often referred to as a CVA.

This is a formal insolvency procedure overseen by an insolvency practitioner BUT the directors remain in control of the company and they have simply "arranged" with the creditors of the company to pay back the debts at an affordable amount over 3-5 years. The actual amount paid back is a proportion of the debt and it needs to be accepted by 75% (by value) of the creditors. It can range from the 20p in the pound to 100p, depending on the circumstances. However an average tends to be 30-60p. Our CVAs have a profit ratchet in them that means if the company does very well then the creditors see a higher return.

Other advantages of a CVA as a tool for business recovery are:

1. Cashflow can be quickly improved
2. A CVA can stop aggressive creditor's actions
3. Lower costs than administration
4. Higher return to creditors than other insolvency procedures such as administration or liquidation
5. Can determine contracts with the same efficacy as Administration or Liquidation
6. Directors remain in control of the business
7. Business continues and jobs can be saved
8. Customers need not know you are in a CVA in many circumstances*