Creditors Voluntary Liquidation (CVL)
Creditors Voluntary Liquidation (CVL) may be the solution if your company is suffering from creditor pressure, cash flow difficulties, or liabilities that are greater than assets.
A CVL is a procedure in which the company’s directors choose to voluntarily bring the business to an end by appointing a licensed insolvency practitioner to liquidate all assets.
The liquidation or ‘winding up’ process allows you to use company’s assets to pay off its debts – with any money left over being paid to its shareholders. If your business is unable to pay its debts, it is important to act fast to prevent putting directors at risk of facing action for wrongful trading or fraudulent preference. In some cases, particularly if you take no action, you may be forced into compulsory liquidation.