What will happen to the assets of the company in a Creditors’ Voluntary Liquidation?
The assets of the company will need to be sold to realise funds for the benefit of the creditors.
If the company has financed items which have equity within them, the liquidator may be able to sell them to pay off the outstanding finance and utilise the surplus funds within the liquidation pot.
All assets will need to be valued by a professional agent who will assess whether those assets have sufficient value to be sold at an auction or should simply be abandoned at the premises.
The agent will review alternatives to an auction such as selling those assets in situ to a connected or third party.
All funds realised from the sale of the company assets will be utilised within the liquidation and then distributed to creditors in the order laid down in the Insolvency Act 1986.
All third party assets will be returned and cannot be sold.