When directors decide to tackle financial difficulties early, experience shows that an early approach gives a much greater chance of recovery. We at D V Mannion & Co Ltd give financial advice on restructuring, refinancing, borrowing and debt management. And if it does come to the worst and a business needs to be liquidated, D V Mannion & Co Ltd can help you through the process and resolve problems along the way.
When a Company reaches the end of its life, or becomes insolvent, one of the options open to it is to be formally wound up by liquidation.
The three main liquidation options are creditors’ voluntary liquidation (CVL), court liquidation and a members’ voluntary liquidation (MVL).
Creditors’ Voluntary L iquidation CVL is the most commonly used procedure for dealing with an insolvent company and the directors “voluntarily” place the company into liquidation. At the subsequent creditors meeting the creditors are provided with an opportunity to appoint their choice of liquidator.
Court liquidation occurs when a petitioner petitions the High Court to appoint a liquidator. It is generally used by creditors of a company seeking payment of monies due to them. However, the process may also be used by disgruntled shareholders etc. Court liquidation is also called a “compulsory liquidation” as the company is compelled to go into liquidation by a petitioner.
A Members’ Voluntary Liquidation MVL is used to liquidate solvent companies. In an MVL all creditors are paid in full, and the surplus is returned to the shareholders.
The liquidator enquires into the company’s affairs, realises its assets, pay its debts and distribute any surplus to its members or its creditors.
Members Voluntary Liquidation MVL
Creditors Voluntary Liquidation CVL
Scheme of arrangement for a limited company
Advising directors regarding restructuring and insolvency