When a company is insolvent—meaning it cannot pay its debts as they fall due—and there is no realistic prospect of recovery, directors may choose to initiate a Creditors’ Voluntary Liquidation. This allows the company to be wound up in an orderly and transparent way.

The process begins with a resolution by the company’s shareholders to appoint a liquidator. The liquidator assumes full control of the company, realises its assets, conducts statutory investigations into the affairs of the company and its officers, and distributes any funds to creditors according to legal priority.

A CVL is a proactive step by directors to deal with an insolvent company responsibly. It can limit exposure to insolvent trading claims and demonstrates cooperation with creditors and regulators.

Helios Advisory takes a pragmatic and outcome-driven approach to CVLs, ensuring that creditors are treated equitably, entitlements are calculated accurately and efficiently, and statutory obligations are met with diligence and transparency.