Liquidation & Administration Services in Tasmania & interstate

Liquidation & Administration

Corporate insolvency occurs when a company is unable to meet its financial obligations and pay its debts as and when they fall due. This situation can arise due to various factors, such as economic downturns, mismanagement, or unforeseen external events.

Company Liquidation

Liquidation is a formal process which involves the appointment of a liquidator and the company’s affairs being wound up in an orderly and fair way to benefit creditors.

The four types of liquidations are:

1.     Creditors Voluntary Liquidation (CVL): takes place when a company is insolvent and is initiated by the directors and shareholders of the company.  

2.     Court Liquidation (CL): a liquidator is appointed by the court to wind up the company following an application (usually by a creditor).

3.     Simplified Liquidation (SL): a streamlined creditor’s voluntary winding up for companies that meet the eligibility criteria.

4.     Members Voluntary Liquidations (MVL): is used to end the affairs of a solvent company and is initiated by the directors and shareholders of the company.  

Voluntary Administration

Voluntary Administration occurs when a company is unable to pay its debts and the directors resolve to appoint a Voluntary Administrator to the company. The Voluntary Administrator takes control of the company’s affairs, evaluates the company’s viability and assists the company in assessing the options available and pursuing the best course of action for both the business and its creditors. This process aims to maximise the likelihood of the company’s survival, protect creditors interests and provide a more orderly and transparent resolution compared to immediate liquidation.  

If your company is in financial difficulty, you should seek advice from a professional advisor to discuss your specific circumstances and options available.

Please do not hesitate to contact us now for a free and confidential initial consultation.