i have my reply posted below as promised and it concurs with my previous posts and evs will return
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Dear Sir,
I act as Administrator to Seven Telecom,but have no responsibility for its parent company,Envesta Telecom.
However,my understanding is that a proposal for a Company Voluntary Arrangement will be sent to all shareholders and creditors within the next few weeks.My firm has no involvement with this proposal.
Company Voluntary Arrangement (CVA).
Debt Guide: Debt solution for limited companies.
The CVA is the procedure in company law which corresponds closely to the individual voluntary arrangement in personal insolvency law. In simple terms a CVA is a deal between a company and its creditors. A feature of the voluntary arrangement is that the company requests extra time to pay its debts and often also asks its creditors to write off a proportion of its debts. The deal may be accepted because creditors take the view that they are likely to receive more in a voluntary arrangement than if the company were forced into liquidation. Furthermore, trade creditors may expect that they will derive profit from future dealings with the company, dealings which would not be possible if the company were to cease trading. Although the voluntary arrangement is administered by an insolvency practitioner known as a supervisor, it cannot be over-emphasised that the deal is between the company and its creditors. Furthermore, and most importantly, the company remains in the day to day management of its directors.
A CVA cannot be forced upon the company's creditors; it has to be agreed by 75% by value of the creditors who vote at a meeting specially convened to consider the voluntary arrangement proposal. Creditors are likely to vote in favor of a CVA so long as they can see a reasonable return on the amount due from the company. This in turn requires:
Satisfactory management
Adequate funding so that the company can pay its ongoing expenses as they fall due.
The benefits of a CVA to the directors of a company are that they....
Avoid bankruptcy or company liquidation.
Regain control and continue trading.
Wipe up to 75% off your unsecured debt.
GUARANTEED DEBT FREE in 60 months.
One easily affordable monthly payment.
All interest FROZEN and charges STOPPED.
Creditors will want to establish in their mind how the company is going to make profits in the future when it has run into financial difficulties in the past. A CVA is therefore particularly appropriate when the company's difficulties arise out of a number of specific but isolated events which are not expected to arise in the future. Such events may be a particularly unprofitable contract, or a significant bad debt, or an under-insured interruption such as fire or flood. If creditors are to support a company voluntary arrangement then they will wish to be satisfied that there is profitable underlying and continuing business and that management is capable of carrying forward the business
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