Creditors’ Voluntary Liquidation

What is Creditors’ Voluntary Liquidation?

A Creditors’ Voluntary Liquidation or CVL occurs when a company’s Directors and Shareholders agree to liquidate the company and appoint a liquidator.

Liquidation is the process used to wind up a Company's affairs and bring its existence to an end.

A CVL is a process which allows for the winding up of a company’s affairs without the need for court intervention.

It can occur at the end of a voluntary administration if creditors vote for the company to be liquidated or when/if a deed of company arrangement (DOCA) has been terminated.

Who is Creditors’ Voluntary Liquidation for?

A CVL comes into play when a company’s Directors and Shareholders determine that it can no longer meet its debt payments and is either insolvent or likely to become insolvent.

The CVL is implemented by those Directors and Shareholders via a series of meetings.

Other factors including actions be the ATO or the Directors at risk of insolvent trading can put pressure on companies to take this course of action.

Why do you need Creditors’ Voluntary Liquidation?

This type of insolvency provides for an orderly realisation and distribution of a company’s assets among its creditors and allows for investigations into the reasons behind the company’s failure.

The effect on a company in a CVL is the same as in a Court Appointed Liquidation.

Once a Company is placed into Liquidation, unsecured Creditors cannot continue recovery action against the company unless they obtain the leave of the Court.

Liquidation does not, however, limit the rights of Creditors to pursue Guarantors of the Company’s

How can Offermans Help?

Experience: As Townsville’s first locally-owned, independent specialist insolvency accounting practice in Townsville, we have over 20 years’ experience helping businesses through this process.

Expertise: Our staff has a wide variety of expertise and qualifications including law, allowing us to provide you the information to make informed choices to achieve the right solution for you.

Ethics: We provide professional, judgement-free, confidential and fully independent services to guide you or your business through any financial situation.

The Process

In a few steps our team can help make sense of your situation, formulate a plan that’s right for you and put it in place to achieve a solution that achieves your financial future free from unpayable debts.

  • Confidential & complimentary 1-hour consultation
  • Quote for services specific to your individual needs
  • Offermans to Develop Strategy
  • Offermans implement strategy
  • You achieve peace-of-mind and financial freedom

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