Many businesses have to deal with adverse conditions at some point during their lifespan. It’s not uncommon for external conditions such as clients closing down with unpaid invoices, pressure from HMRC and even market forces to mount up and push the balance sheet into the red.
In such situations many directors are unaware of their choices. However, there is an official insolvency procedure known as a creditors’ voluntary liquidation (or "CVL") that allows you to formally close down the company and use the remaining assets to resolve your debts.
Once the company has chosen this course of action, an insolvency practitioner is appointed to oversee the process. A schedule is composed of all the remaining assets, which are subsequently auctioned off to repay the company’s creditors on a priority basis.
It is possible under UK company law for the directors of the business to purchase key assets during this final sale. These can be deployed to launch a new enterprise whilst retaining jobs, clients and even the trading premises. McTear Williams & Wood has helped a number of organisations successfully go down this route.
How can we help you?
Free initial assessment - in the first instance, we are able to offer you a consultation appointment that reviews your current situation and provide you with an overview of your choices.
Business recovery assessment - are you sure a CVL is the best move for your business? It may still be possible to turnaround your business and there may be better options.
Communicating with creditors – one of the key steps in implementing a CVL is setting up a meeting with your business’s creditors in order to pass the resolution to allow the liquidation and to confirm the choice of liquidator.
Liquidating your company - we manage the process through which your assets are realised and sold to the highest bidder to assure you of a quick and trouble free transaction.
Contact one of our senior advisors to discuss a creditors' voluntary liquidation at our Kettering offices.
In a simple one to two hour free and completely confidential appointment, we’ll be able to give you our best advice allowing you to plan for the future of your business.