A court liquidation arises when a creditor—typically owed a substantial debt—petitions the court to wind up a company that has failed to pay. If the court is satisfied the company is insolvent, it will order its winding up and appoint a liquidator.

This type of liquidation often follows formal demand notices (such as statutory demands) and is used when creditors believe the directors will not act voluntarily so to stem further creditor losses or when they suspect misconduct.

Once appointed, the a liquidator will:

• Take control of the company’s assets,

• Investigate the company’s financial affairs and director conduct,

• Recover any voidable transactions or insolvent trading claims,

• Distribute funds to creditors,

• Report breaches of the Corporations Act to ASIC.

At Helios Advisory, we are experienced in court liquidations involving disputes, asset recovery, and regulatory reporting. Our approach is thorough, impartial, and efficient.