Compulsory Liquidation
Liquidation is the process by which insolvent companies are closed down and debts repaid to creditors out of the available assets. This happens when there is no prospect of rescuing the company. A Compulsory Liquidation is initiated by the court following a petition for winding-up (this petition is typically presented by creditors).
The process is forced upon the company and if it is unable to settle the debt in the Winding-up petition then the company will be wound up without the consent of the director. It takes control away from directors and members over the whole process.
Compulsory liquidations are handled by the Official Receiver in the first instance, but creditors may request that an insolvency practitioner takes over (the Official Receiver may also choose to pass the case to an insolvency practitioner where they consider the specialist skills of an insolvency practitioner are required).
Many companies can avoid this outcome by seeking insolvency advice as early as possible.
If you’re facing a winding-up petition, expert guidance is necessary and can help make this difficult time for you and your business as smooth as possible.
Are you facing a winding-up petition?
A winding-up order is a legal order made by a court that orders a company to be wound up. This means that all of the company’s assets will be sold to pay its debts, and the company will be liquidated as a result.
If you are facing a possible winding-up order from the court, you need to speak to an insolvency practitioner as soon as possible. We can also explore alternative routes for you and your business, this may include Administration.
How can Springfields help businesses facing a winding up petition (compulsory liquidation)?
If your company is facing a winding-up order from the courts, don’t hesitate to arrange a free consultation with a licensed Insolvency Practitioner.
Expert advice will be offered, with a detailed discussion tailored to your specific situation.
Get the advice your business needs.
Contact us for a free exploratory discussion. Call us.
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