NEWS & INSIGHTS
Understanding Creditors' Voluntary Liquidation
What is a Creditors' Voluntary Liquidation?
A Creditors' Voluntary Liquidation commences when the directors and shareholders of a company decide to wind up a company’s affairs due to insolvency.
This action initiates the liquidation process, which is aimed at concluding outstanding debts and distributing remaining assets amongst creditors. The process allows for an orderly winding up of company affairs while offering relief to directors. On their appointment, the liquidators take control of the company affairs.
Navigating financial Distress: The role of a Creditors' Voluntary Liquidator
Effectively executing a creditors' voluntary liquidation requires a coordinated effort to address financial challenges. This involves:
- Managing communications with company creditors transparently and professionally.
- Assuming control over and realising company assets.
- Pursuing legal avenues to recover owed funds.
- Ensuring the lawful distribution of funds to creditors.
Subject to certain priorities, available funds are distributed among unsecured creditors proportionally, based upon the value of creditor claims.
Seeking guidance about a creditors' voluntary liquidation? Let us assist you
At Wexted Advisors, we are experts in CVL’s, offering specialised counsel and personalised strategies.
If your Company is encountering financial difficulties, contact us for a consultation. Let's work together to map out a path towards stability.