What is a CVL (Creditors’ Voluntary Liquidation)?
When a company has reached a position at which it can no longer pay outstanding arrears it is officially regarded as ‘Insolvent’. At this stage company Directors must assess their position and proceed with the most appropriate action, considering the best interests of all remaining creditors. The best answer is often to initiate a Creditors’ Voluntary Liquidation (CVL).
This enables the Directors to act before creditors pursue legal action and a Compulsory Liquidation, giving them the benefit of extended control within the process which they otherwise forfeit.