The procedure is used where a rescue in not viable.
A CVL is initiated by the director(s) of a company who, with shareholders, nominate an Insolvency Practitioner to wind up the insolvent company. Creditors formally make the appointment at a virtual meeting of creditors, usually held within 2-4 weeks of seeking advice.
RG Insolvency will assist you in the preparation of the company’s statement of affairs (effectively a balance sheet), together with a report to creditors outlining the company’s position.
The liquidator must be a licensed Insolvency Practitioner who will dispose of all company assets and share the proceeds with creditors in accordance with their adjudicated claims and priorities.
The liquidator will also report on the conduct of the directors in relation to the demise of the company. Directors must be mindful at all times that if their company is struggling, they should not continue to trade whilst knowingly insolvent, unless they are very confident that the company’s fortunes will change.
RG Insolvency will advise you of all your options, your responsibilities and the consequences of the CVL procedure.
Call us now on 020 3603 7871 to discuss your options.