Creditors Voluntary Liquidation Engineering Company

We were contacted by the company’s accountant to provide advice regarding a family run company that was insolvent.

The company was heavily reliant for work from one customer who was particularly difficult to work for and had run up a debt with them of nearly £100k.

The company had an overdraft facility that was guaranteed by both directors. The directors were extremely concerned that if the debtor did not pay them, they would lose their home.

We assisted the directors in placing the company into creditors’ voluntary liquidation. We then commenced action to recover the debt.   The majority of the debt was recovered before the debtor went into administration.

The liquidator was able to discharge the bulk of the debt to the bank and the directors reached agreement with the bank to settle the balance without putting their home at risk.