Liquidation is the point at which a limited company is legally ended. It is a formal process during which assets of the company are sold for the benefit of creditors and the company is dissolved. A liquidation may be solvent or insolvent – while the term is most commonly associated with a business that is insolvent and cannot pay its debts, liquidation may also present an opportunity to walk away from a thriving enterprise and extract the profits. However, it is a final and formal process and expert advice is necessary, whatever the reason behind the liquidation.
At Mercantile Barristers, we provide strategic and tactical advice throughout the process of liquidation and have worked with liquidators and creditors, as well as companies that are the subject of liquidation. Our involvement may be as simple as issuing a Winding-Up Petition on behalf of creditors and negotiating distribution of assets so that our clients receive a fair settlement. Or it may require extensive court time, for example for on behalf of company directors looking to prevent a business from being dissolved.
The process of liquidation requires skilful management, both for creditors and debtors, as well as careful preparation and committed and strategic action. Our Insolvency barristers provide expert legal support that is designed to effectively and swiftly achieve desired outcomes.