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Creditors’ Voluntary Liquidation
A Creditors' Voluntary Liquidation (CVL) is the procedure to wind up your company (or deal with the closure of it) if the company is insolvent - or in other words the value of the assets of the company are not enough to be able to clear all of the debts.
A CVL is to be used (rather than an Administration or Company Voluntary Arrangement) if there is no part of the business that can be sold or is worth trying to salvage. Of course, we will carefully review this with you to make sure the right process is chosen to deal with your company.
How we efficiently manage your CVL
The trade will need to stop once it has been decided that the company will enter into CVL. We will advise you on the exact timing of this and we will also need to take into account:
- Any work in progress and possible completion of that work, if possible.
- Any creditor action such as bailiffs being instructed or a winding up petition issued.
- Continued occupation of premises and liaising with the landlord.
- Releasing of employees…. and so on...
As the appointed liquidator for your CVL we will continue to:
- Liaise with creditors and resolve any issues with creditor claims.
- Take steps to sell the equipment and plant.
- Commence collection of outstanding book debts.
- Carry out reports to the government bodies.
- Deal with employee claims and so on...
Voluntary Liquidation Process Completion
Your in-depth involvement with the company will effectively cease once the trade has stopped. You will need to liaise with us so that we can deal with all matters of the voluntary insolvency as effectively as possible but this is likely to involve only some telephone calls and occasional meetings. After selling and realising all of the assets there may be a dividend to creditors if enough funds have been realised. The company will eventually be struck off the register of companies once all the monies have been distributed and necessary clearances received. This usually takes up to two years from the date that trade ceased.
Creditors' Voluntary Liquidation Process
If you believe your company may be insolvent -
- Contact our Liquidation experts here at Griffin & King.
- Your company position will be fully discussed with a qualified member of the Griffin & King team. We will listen carefully to your concerns, worries and future plans and suggest a plan that takes these into account.
- Based on these discussions you will decide to either place the company into Liquidation or consider other options.
- Formally instruct Griffin & King to wind up your company by signing a number of forms.
- The winding up procedure will commence immediately.
- We will deal with your creditors and employees.
- You will be allocated a case manager to your case who will be pleased to answer any questions that you have, however futile you believe these maybe.
- Your progress will be monitored carefully, at all times by an Insolvency Practitioner.
For our Creditors' Voluntary Liquidation Online Service please click here.