Creditors Voluntary Liquidation. (CVL)

In a business sense, a Creditors Voluntary Liquidation (CVL) is the equivalent to bankruptcy and it’s the appropriate course of action for a company that is insolvent and no longer able to trade.

Creditors Voluntary Liquidation is currently the most common form of liquidation in the UK. Despite its name, a CVL is director-led and with the agreement of shareholders and creditors, the company is placed into liquidation. The business closes down, the employees are dismissed and the assets sold to pay off debts.

Whilst traditionally a CVL has been used for winding up a company, today it is also increasingly being used for recovery. If a company is viable and can be restructured, its assets and goodwill can be purchased and transferred into a new debt-free phoenix company.

Whichever route you decide upon, our specialist business advisors can give you more information on liquidation and phoenix companies – and ensure your case is handled by Licensed Insolvency Practitioners.

To find out more about the many ways we can help you, contact the specialist business team today or call 01204 867615 .