Consequences of liquidating a

03-Nov-2020 00:14

To avoid any of the above consequences Directors may like to look at other options such as Company Voluntary Arrangements (CVA) or pre-pack phoenix process to retain control.

In any event, it is vital that businesses take qualified and experienced insolvency advice before choosing a course of action to ensure that the safest route is taken.

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Once the business goes into administration the control passes away from the Directors and into the hands of the insolvency practitioners appointed.Insolvency and the instigation of a formal insolvency procedure will almost certainly be considered an event of default under these rules and will entitle the lender to take steps to enforce any security it holds.

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