Services

CVL
Creditors’ Voluntary Liquidation

• Where a company’s directors find themselves in a situation where the company is insolvent and is no longer able to trade without further funding and no prospect of recovery or rescue seems forthcoming; directors may opt to place the company into CVL.

• The CVL Process is common place within Insolvency, and if used quickly and efficiently, denotes the director’s intent and goodwill towards a company’s creditors, by bringing the company’s affairs to a timely and consensual close.

• Once appointed a Liquidator will seek to maximise asset realisations in order to provide a return to creditors. Although there may be a notable shortfall to creditors, the CVL process offers creditors a greater say in the winding-up of a company with a higher chance of returns, in comparison with action taken against a company by creditors, in the form of a Compulsory Winding Up.

MVL
Members’ Voluntary Liquidation

• An MVL is a common process used when directors/shareholders find themselves in charge of a solvent company, that may no longer serve its purpose or its directors may no longer wish to operate the company.

• Where a company is solvent, still profitable and sits on sizable assets or reserves, the MVL process affords shareholders a simple, hassle free and financially prudent option of winding up a company. There are tax benefits, which are otherwise unavailable to the company.

Administration

• Where a company may find itself in financial difficulties, its directors (or other stakeholders), recognising the potential viability of the business with a suitable rescue or restructuring package in place, can appoint an Insolvency Practitioner as Administrator.

CVA
Company Voluntary Arrangement

• A CVA will allow a company with notable debt problems to reach an agreement with its creditors regarding a full or part payment of its debts over a period of time.