Creditors voluntary liquidation
A creditors voluntary liquidation is frequently used by insolvent companies that have no reasonable prospect of survival. A company is deemed insolvent when it is unable pay its debts as they fall due.
A creditors voluntary liquidation will stop the company’s creditors’ position from deteriorating. This can also have adverse implications for the directors’ own positions.
A creditors voluntary liquidation can bring closure to an unsustainable position for a company and its directors, with all the attendant anxiety and stress. Since the directors’ powers cease upon liquidation, it is the liquidator who takes responsibility for dealing with the company’s employees, creditors and all other matters.
How we can help you
If you decide that a creditors voluntary liquidation is the best option for your company, we can help you with all the necessary steps to place a company into liquidation. We can also act as liquidator.
We understand that going through the liquidation process can be a very worrying time for directors so our experienced staff will assist and advise you throughout the process. We will ensure that the liquidation progresses quickly, smoothly and cost effectively. We will deal with all employee and creditor claims quickly and fairly.
We regularly act as liquidators and have taken appointments across a wide range of businesses, from small enterprises up to large multi-jurisdictional corporations.
How does a creditors voluntary liquidation work?
The company holds a series of meetings including a directors’ meeting, a shareholders’ meeting and a creditors’ meeting in order to put the company into liquidation.
Once appointed, liquidator will sell the company’s assets and distribute the proceeds to the company’s creditors. He will also assist the former employees with any claims that they may have, such as arrears of wages & redundancy, and resolve any creditor queries.
If you would like a free initial consultation to help you decide whether creditors voluntary liquidation is appropriate for your company, please contact Warren Baxter at +353 1 417 2625 or wabaxter@deloitte.ie. Complete confidentiality is assured.
Contact us
Warren Baxter
Director
T: + 353 1 417 2625
