Liquidation & insolvency
All businesses face challenges at some stage in their life cycle. Unfortunately some don’t survive because of internal pressures, external events or economic conditions. If your business is in this situation KBBF LLP can help.
We understand what you are going through
Our team will –
- Listen to you and treat you fairly
- Preserve value in your business
- Reduce stress on Directors
- Deal with your problem or provide you with practical support to resolve it yourself
Our approach is inclusive and, wherever possible, we work towards mutually agreeable solutions that meet the needs of all stakeholders to maximise the return.
There are a number of ways a company can go into liquidation. In most cases the company decides to stop trading and the shareholders appoint a liquidator.
Liquidation is the effective end of a company’s life.
Voluntary Liquidation of Insolvent Companies
When the shareholders and directors of a company have identified that the business is insolvent an orderly winding-up of its affairs is required. The process is very simple and normally involves shareholders signing a written resolution appointing liquidators.
In most cases we charge no up front fees.
Often people confuse liquidation with receivership. When your business is put into receivership a secured creditor takes control of the company in order to recover what they are owed. A receiver is acting on behalf of a secured creditor. A liquidator on the other hand is working for all creditors and is appointed by the company’s shareholders or the courts.
Court appointed Liquidation – Winding-up Application
This is where a creditor presents a formal winding-up application to the courts. In this scenario a creditor, not the shareholders, decides who is to be appointed liquidator.
If you receive a statutory demand from a creditor, contact one of the team at KBBF LLP. We can help you resolve the situation.