Liquidations
The purpose of Liquidation is to wind up a Company’s affairs when it is insolvent and has no option but to cease to trade. In most cases a Liquidator is appointed by Shareholders with the approval of creditors. The Liquidator’s job is to sell the assets to distribute the proceeds to creditors. A creditor can also petition for the compulsory liquidation of the Company.
A Liquidation should only be considered if the business is not viable or capable of being restructured.
For more information about how a Liquidation works press here