CVL

When liquidating a company, using a cost-effective method is paramount. For solvent companies, it’s in the best interests of directors to be efficient in order to retain as much of their profits as possible. For insolvent companies, cost-effectiveness means paying off a larger portion of the company’s debt. Clearly, choosing the most cost-efficient method of…

For financially struggling companies, it can be difficult to decide on the appropriate course of action. Bringing such a company back to solvency is a challenging task alone, but dealing with creditor pressure and looming legal action can sometimes dwarf operational difficulties. Two potential solutions are apparent for companies in such a position: a Creditors’…

Closing a company can be a difficult affair, but closing an insolvent company has unique issues that need to be dealt with in a certain way. The process must be handled carefully, with directors obligated to act in the interest of their company’s creditors (i.e. the people who they owe money to). Given the sensitivity…

If you are a director of a company that is being placed into Creditors’ Voluntary Liquidation (CVL), you might be entitled to claim redundancy payments from the Insolvency Service. The Gov.uk site provides some guidance on this topic here. To be eligible for redundancy payments as a director, you will need to confirm your status…

For many companies, liquidation will be considered at some point. This could be for a wide range of reasons, from directors changing their priorities, to a decline in profitability. Other times, companies will be saddled with large amounts of debt and lacking the income to make repayments, leaving a Creditors’ Voluntary Liquidation (CVL) as one…