Interlocking IVA
This is a vehicle mainly used by directors of a company who feel that the company can withstand their current problems if they can overcome the creditor debt. The directors would make an offer to the creditors that should they or within a period of time they will inject a capital element as a full and final settlement of the company's debts.
If accepted this would allow the directors to restructure and preserve the continuance of business
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Normally a charge would be taken against the equity within their individual homes, or other, as a security of their undertaking.Once in place this would allow the business to be managed without the worries of creditors chasing for payment.
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This is attractive to creditors, especially if the company has little or no assets or if such assets are secured elsewhere.
An Interlocking agreement can be reached by offering a security but monthly contributions, lessening contractual sum accepted by the creditors, thus on a reducing balance.
One has to explore what other proposals maybe accepted by the creditors in support of keeping the business afloat.
The best way forward would be to explore the different options that will be outlined by any qualified IP (Insolvency Practitioner)
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Before entering into any contractual arrangement, one should seek independent legal advice.