Our experienced team of insolvency and recovery practitioners are ready with the professional advice and guidance you need, and when recovery is not feasible we can advise and assist with the most appropriate solution depending on the circumstances and desired outcome.
For insolvent companies, there are two main liquidation processes that companies undergo – Creditors Voluntary Liquidation (CVL) or Compulsory Liquidation.
Our focus is always on recovery and not burial, and we will conduct a thorough assessment of your business and your situation to analyse whether recovery may be possible. If recovery is not possible, and you haven’t been forced into liquidation by your creditors, then CVL is often the most valuable process for all parties involved.
A CVL is an insolvent liquidation process initiated by the shareholders or directors of a company, rather than their creditors.
This process involves a licensed Insolvency Practitioner to act as a liquidator for the company. The liquidator will then realise all of the company’s assets and distribute the maximum return to creditors and shareholders in order of priority set down by law.
When a winding-up petition has been issued to the court by a creditor, it will normally force an insolvent company into paying the debt due, or, the company will be forced to close down and sell assets so that creditors can recover some of what they’re owed.
It’s critical that you seek advice from a professional as soon as you forecast complications. Early action minimises the impact on creditors, improves the outcome for shareholders and reduces the risk of Directors falling foul of their duties and responsibilities. Other options may be available such as offering the business for sale or restructuring, all of which can be assessed by the team. Even if administration or liquidation proceedings are already underway, we can still improve your chances of recovering your debts. This can involve attending creditor’s meetings, giving our opinion on proposals put forward, and using your proxy vote.
Contact us today to find out more about how we can help you
It’s important to react to any financial issues in your business quickly. We’re here with all the professional advice and support you need to tackle any issues head on.