Creditors’ Voluntary Liquidation
Creditors’ Voluntary Liquidation (CVL) is a solution for companies (and LLPs) that are in financial difficulty and are unable to pay their debts. In addition, despite the best efforts of the company directors or the application of other turnaround solutions that such as administration or a CVA, it is clear that there is no chance of a recovery in the company’s financial position.
We as licensed insolvency practitioners support company directors in how best to stop trading in a structured way. We will communicate and support all those affected and also coordinate the formalities of placing the company into Creditors’ Voluntary Liquidation (CVL).
Once the company is in liquidation, it is our job as appointed liquidators to recover and sell company assets to pay those who are owed money (known as ‘creditors’). We are also required to carry out a general review of the actions and behaviour of the company directors in the period leading to liquidation to ensure that they were reasonable.