Creditors’ Voluntary Liquidation (CVL) is a process instigated by proactive and responsible directors of an insolvent company where there is no reasonable prospect of a recovery of their company’s financial position. It involves a structured cessation of trading to avoid a worsening of the position and the appointment of an independent licenced insolvency practitioner to act as liquidator of the company.
We can advise whether a CVL is indeed the right solution and, if so, provide dedicated support to the directors in placing their company into CVL so that a line can be drawn under the difficult circumstances experienced by all involved.
As a more favourable option than compulsory liquidation, key to the CVL process is an opportunity for directors to engage with creditors in an open and honest way to demonstrate that they have acted responsibly throughout. Once in liquidation, directors can focus their energy and attention more positively on the future, which quite often involves starting again in a new successor company.