A Creditors’ Voluntary Liquidation (CVL) is a process where the directors of an insolvent company, with the agreement of its shareholders, choose to liquidate the company. This is different from Compulsory Liquidation, which is enforced by a court.

If your company is facing severe cash flow issues and mounting debts that can’t be repaid, a CVL could be the best path forward. This director-led process includes a moratorium, which temporarily halts legal actions from creditors, giving you the space to manage the situation without immediate pressure.

Once shareholders approve the CVL, the company will cease trading, and its assets will be sold to repay creditors. This option provides a structured way to handle debt, making the liquidation process more controlled and less stressful.

A CVL is particularly useful for companies that are under significant pressure from creditors.

YLA will personally guide you through every step of the CVL, ensuring the process is handled professionally and efficiently, giving you peace of mind during a challenging time.