If your company doesn’t have the solvency to go ahead with an MVL, a Creditors’ Voluntary Liquidation (CVL) could be a viable alternative.
Creditors’ Voluntary Liquidation is a formal insolvency procedure initiated by a company’s directors when the company can no longer meet its financial obligations.
This process involves appointing a licensed insolvency practitioner to liquidate the company’s assets, with the aim of repaying creditors and legally dissolving the company.
Why use a Creditors’ Voluntary Liquidation?
- It’s your choice: As a director, it gives you the opportunity to take control over how your company closes by initiating the liquidation.
- It can preserve your reputation: Entering into a CVL is a sign that you’re taking your legal obligations to creditors seriously.
- It’s a structured way to resolve debts: The liquidation process offers you a formal way to repay your outstanding debts, ensuring your creditors are treated fairly.
If your company’s facing financial challenges, it’s crucial to act promptly. Working with our licensed insolvency practitioners can help you smoothly navigate the complexities of company closure.
