Creditors’ Voluntary Liquidation
Creditors’ voluntary liquidation (or CVL) occurs where the shareholders, usually at the directors’ request, decide to put a company into liquidation because it is insolvent. The creditors can appoint a liquidator of their choice.
The CVL is the most common way for directors and shareholders to deal voluntarily with their company’s insolvency; however the company will cease to exist and all the assets, including the good will, plant, machinery and book debts will be sold, if possible, for the benefit of creditors.
If you would like further information or would like to discuss your options please call 01709 331300.