Insolvent Liquidation

A director can propose an insolvent liquidation – also known as a Creditors’ Voluntary Liquidation (CVL) – if a company cannot pay its debts.

On these occasions, a licensed insolvency practitioner (IP) like CG&Co is appointed as liquidator and immediately takes charge after a company’s shareholders pass a resolution to wind that business up. At this point, a company stops trading and is liquidated.

A statement of affairs is subsequently presented to the company’s creditors along with a report which details the directors’ reasons for its failure as well as any deficits on the balance sheet.

The liquidators are appointed by “deemed consent”, which means that creditors don’t have to agree their appointment. Nonetheless, creditors can still request a meeting with both the directors and liquidators under certain circumstances.

“At CG&Co, we’re aware that insolvent liquidation can mean that a company’s directors are liable for some of the costs. But when a responsive insolvency practitioner is appointed escalating situations are quickly contained and – ultimately – resolved. From the start, CG&Co provides clients with complete transparency over our costs so they always know where they stand.”

Edward Gee, Partner – CG&CO

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CG&Co is a trading name of
CG Recovery Limited, a company
registered in England and Wales
under company number 08249691

Greg’s Building,
1 Booth Street,
M2 4DU

Tel: 0161 358 0210
Fax: 0161 358 0211