Insolvent Liquidations

Cork Gully has extensive experience in all forms of insolvent liquidation and can assist clients both before and during an insolvent liquidation process.  This can be the only outcome for a company if it is insolvent and there is no possibility of it continuing to trade without adversely affecting the interests of the creditors.

Creditors’ Voluntary Liquidation  (CVL)

The process whereby a company enters Creditors Voluntary Liquidation (CVL) is a consensual one between the directors, shareholders and ultimately, creditors. Cork Gully will assess and advise on the options to the company and its directors given the financial position. Should liquidation be the most appropriate solution then we will advise the company and its directors of their legal and statutory requirements and ensure that all of the necessary documentary and procedural steps are carried out correctly.

Advising the Company and the Board

The process for commencing a CVL begins with a meeting of the board of directors at which it is agreed to convene a general meeting of shareholders, to resolve to place the company into voluntary liquidation and appoint a liquidator, followed by a meeting of creditors thereafter.

Our focus during this initial process is to offer the highest professional standards of service to the company and its directors bearing in mind the likely sensitivities of the situation. Cork Gully will assist the company’s directors by preparing the statutory report on the company’s history and reasons for failure (that the chairman of the creditors’ meeting – a director of the company – must present) and preparing the company’s statement of affairs, summary of financial position and explanation of the deficiency to the creditors.

Appointment as Liquidator

Cork Gully can accept appointment as liquidator at a shareholders’ meeting or, if creditors wish to replace a liquidator chosen by shareholders, Cork Gully can be appointed as liquidator by creditors at the meeting of creditors that follows it.

Alternatively, if a CVL liquidator is already in office and creditors wish to replace him, Cork Gully can advise creditors of their options which include requisitioning a meeting to appoint a replacement liquidator at which Cork Gully can replace the previous liquidator. .

Compulsory Liquidation

Compulsory liquidation is a court driven process to wind up a company on the petition of a creditor, the company, its directors, or, very rarely a shareholder.

Advising Stakeholders

Cork Gully can advise all stakeholders in evaluating their options and considering whether they wish to petition the winding up of the company.

Appointment as Liquidator

After the winding up order is made by the court, Cork Gully can accept an appointment as liquidator.

  • After a meeting of creditors convened by the Official Receiver to appoint a liquidator; or
  • By being appointed by the Secretary of State appointment – which will usually occur in cases where a majority creditor wishes to see a liquidator appointed but where the Official Receiver is reluctant to convene a creditors meeting; or
  • If creditors are unhappy with the existing liquidator of the company and requisition a meeting of creditors to choose a replacement liquidator; or
  • A provisional liquidator where the assets are believed to be in jeopardy or under dispute.

Once appointed as liquidators in either a CVL or Compulsory Liquidation, Cork Gully will:

  • Evaluate and seek to pursue claims for fraudulent trading, wrongful trading, undervalue transactions, preference transactions, and unpaid capital, in order to enhance returns to creditors; and
  • Deal with the company’s assets by realising them and making distributions to secured, preferential and unsecured creditors.