Company Debt Solutions Available
Company Debt Solutions Available – Creditors Voluntary Liquidation (CVL)
- Company can not meet its liabilities
- Initiated by Directors & Shareholders
- Immediate stress relief as Proposed Liquidator assists from day one
- Low Cost Fixed Fees
- Options for Employees
- Legal Action is halted
- Debts are written off
When a company is facing financial problems and there is no reasonable prospect of rescuing the Company, then the procedure that would best suit a ‘shut up shop’ option is that of a CVL. This is the most common liquidation procedure in the UK.
A CVL is initiated by the directors of the Company and involves the shareholders placing the Company into Liquidation and appointing a Liquidator. The Liquidator is able to act quickly in this procedure and take control of the situation on behalf of the Company.
Once we are instructed in respect of the CVL, the entire process is handled by us, all creditors are to liaise with us and this will immediately alleviate the stress that comes with dealing with creditor pressure.
As a CVL
is initiated by the directors and shareholders of the Company, a certain degree of control is retained and can avoid the Company entering into Compulsory Winding Up
if a creditor is or has issued a Winding up Petition
There are many more advantages to CVL, including options for employees to claim their unpaid wages, holiday pay, redundancy and loss of notice through the Government Scheme, options to purchase back assets of the Company if required and can give directors and shareholders the opportunity to continue forward with new business ventures without the strangling debt of the Liquidated Company.
To discuss this option or any others in more detail please contact one of our team for a same day consultation on 0800 612 5448 and one of our team will be happy to assist.
Company Debt Solutions Available – Compulsory Liquidation
- Court Procedure
- Minimal Control of directors
- Can be much more expensive than CVL
A Compulsory Liquidation is ordered by the Court, usually on the petition of a creditor but it can be on behalf of the company or a shareholder. An Official Receiver (OR) immediately takes control of all aspects of your company. The OR is not an independent Insolvency Practitioner they are a government body.
A Compulsory Liquidation can only ensue following the procedure set out in order to issue a Winding Up Petition. No doubt the Company will have been under significant financial pressure for some time, the issuing of a Winding Up Petition is the most serious action a creditor can take.
If your Company is receiving significant pressure from creditors, particularly statutory demands or threats of Winding Up, then you must act quickly as time is of the essence. Should a Petition be served, then the options available to the Company significantly reduce.
We can still assist if your Company has been issued with a Statutory Demand or Winding Up Petition, but you must act quickly if you wish to try and avoid the Compulsory Liquidation. As the name suggests, control is completely taken away from the directors with regards to the appointment of the Liquidator. Of all formal insolvency proceedings, Compulsory Liquidator is arguably the most invasive of procedures.
Should the Company be viable we can look at securing a Company Voluntary Arrangement (CVA)
or Admnistration (ADM) for your Company. For more information on CVA or ADM, please see Rescue options above.
Company Debt Solutions Available – Company Dissolution
- Avoids formal insolvency procedure
- Strict criteria must be met
- Risk of restoration for up to 20 years
A Company may be dissolved from the register by means of Voluntary Dissolution, however, certain strict criteria must be met in order to do so. Should the Company have liabilities at the date of proposed dissolution then there is a risk that a creditor of the Company may request that the Company be restored to the register for as much as 20 years from dissolution in some cases.
In order to dissolve the Company there are strict guidelines on trading periods, notices given to certain parties of the intention to strike off etc.
Alternatively, if you are wishing to restore a Company to the Register then the process can be a bit daunting and we can assist you with this.
Should you think that dissolution may be an option for your company or want to discuss assistance with a restoration then we can assist. Please call a member of our team on 0800 612 5448
or email [email protected]
and one of experiensed team will be happy to help.