Creditor's Voluntary Liquidation
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At Haslers we have a dedicated team of people who understand the financial difficulties companies face.
We have the experience to help your company find a solution to resolve these debt related problems.
A voluntary arrangement enables trading to continue and a scheme of repayment to be agreed with creditors, whilst avoiding more formal insolvency procedures. The arrangement aims to allow survival as a going concern or the enhancement of asset realisations.
After obtaining details of your financial situation our specialists are able to advise on a range of options and find an appropriate debt solution for you. In the event that formal insolvency becomes inevitable we will recommend the most appropriate procedure.
Company voluntary arrangements (CVA)
The CVA was introduced by the 1986 Insolvency Act. A CVA is a corporate equivalent of an IVA. The company puts a proposal to its creditors to satisfy its debts and usually allows the company some element of debt relief. The procedure has the advantage of being very flexible and the creditors will often have input into the detailed terms of the agreement In order to be approved the arrangement needs approval from at least 75 percent in value of the creditors, however once approved it is legally binding on the company and all its creditors, whether or not they voted in favour of it.
Creditor´s Voluntary Liquidation (CVL)
When your company is faced with potential insolvency, liquidation may be the most appropriate course of action depending on your company´s individual circumstances. It is possible for the directors to initiate the liquidation process on a voluntary basis, but with shareholder approval. Alternatively, a creditor who is owed money may issue a winding up petition through the courts which, if granted, takes control of the situation out of the directors' hands.
Compulsory Liquidation
A Compulsory Liquidation is an alternative means of winding up a company which will involve a court order usually on the petition of a creditor, a shareholder or the company itself. The company can be wound up on a number of grounds but most commonly because it is insolvent. This is usually established by failure to comply with a statutory demand. The Official Receiver (OR), an employee of the Insolvency Service and executive agency of the Department for Business, Enterprise and Regulatory Reform (BERR) will normally be appointed initially as the company´s liquidator. An insolvency practitioner may later be appointed liquidator in place of the OR
Why choose Haslers?
Haslers has considerable expertise in investigating and monitoring businesses in financial difficulty, diagnosing the problems and putting forward plans for reconstruction or rescue. The firm's advisers are, therefore, ideally placed to undertake this review for you.
When continued support of the customer is warranted, Haslers will advise on the steps required to protect the creditor's position.
For more information please contact our Insolvency Team.
