Liquidation

Voluntary liquidation: Solvent liquidation

A solvent liquidation (Members’ Voluntary Liquidation) is where a company is able to pay all of its liabilities within 12 months. This is generally used when the shareholders want to realise the investment they have made in the company or when the company has achieved what it originally set out to do.

Our Corporate Recovery division would be appointed as liquidators following instruction from the management board. Our role would be to distribute funds to creditors and shareholders. We would then effectively restructure the business (according to a Section 110 appointment) so it could carry on trading in a different format.

Voluntary/Compulsory liquidation: lnsolvent liquidation

An insolvent liquidation (Creditors’ Voluntary Liquidation) is when a company is unable to pay its creditors in full.

Our Corporate Recovery division would advise the management board on the viability of the business. If there is no prospect of a turnaround then we would put the business into liquidation. We would act as liquidator, realising the assets and distributing them to creditors.

We are able to advise on the appropriate course of action to ensure that directors comply with their statutory duties and creditors interests are preserved.

View the Corporate recovery FAQs here.

Contact us

For a free initial consultation with our Corporate Recovery division please contact Paul Davis or Mick Sanders on 020 7429 4100 or send us an enquiry online.