A CVL is a procedure when a company is insolvent and is unable to trade out of its financial difficulties. It is a formal process under which the company's assets are liquidated and, in many circumstances, a return is made to creditors.
A traditional wholesaler had traded for a number of years and had historically made good profits. However, technological developments meant the company was no longer able to compete and make profits. It was possible for some of the customers to purchase stock lines very cheaply online. At the initial meeting several options were considered but the directors took the decision it was the end of the line for the company.
The directors gave formal instructions to assist them with placing the company into liquidation. As part of the process, we also helped all the staff, including the directors, to submit claims for the sums due to them for redundancy, unpaid wages etc. to the Redundancy Payments Office.
A family member of one of the directors came forward with an offer to purchase the stock. After considering the other options for selling the stock, the family member's offer was considered to be the best available and was accepted by the liquidators. This is only possible in circumstances where the offer from the family member is clearly the best available.
In the circumstances this achieved the best possible outcome and enabled a return to be made to the company's creditors.
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