Many businesses suffer from cashflow problems at some point during their lifetime. Changes in market conditions coupled with pressures from HMRC and other creditors however can sometimes conspire to create an even bigger issue – insolvency and when the total assets our outweighed by liabilities some directors struggle to know where to turn next.
Fortunately it is possible to legally and formally end a company whilst paying off your debts to the maximum extent possible with a creditors’ voluntary liquidation ("or CVL"). This is an official insolvency procedure that shuts down the company whilst allowing you to retain control of the process.
Once the company has decided to take this course of action a licensed insolvency practitioner is appointed to oversee the process. A schedule is made of all the remaining assets and these are sold off to the highest bidder, with the proceeds of the sale being used to meet the demands of the creditors on a priority basis.
In some cases, where appropriate, directors are allowed to repurchase key assets of the business and use them to relaunch the business as a completely new venture McTear Williams & Wood has supervised several companies through this process, achieving a successful result, saving jobs and clients.
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.
If you would like to find out more about creditors’ voluntary liquidation at our Southampton offices, then please get in contact to arrange an appointment. In a completely confidential meeting we’ll be able to go through all your options and help you understand the best path forward for your business.
How else can we help? Other services we offer in your area: