IVA Glossary
C
Creditors Voluntary Liquidation (CVL)
A licensed insolvency practitioner is usually being appointed when a company must discontinue all kind of activity because of insolvency. The director is the key person of the company, who will take the decision whether or not the company must be put into liquidation.
Accumulating high debts which the company is unable to repay, will usually lead to the decision of putting the company into liquidation. There will be several creditors' meetings, where they will go through the company's actual financial status, and will be able to calculate an estimate of how much they will be able to recover from their losses, and in how much time.
The main role of the committee is to supervise the actions of the liquidator, and generally to supervise the whole process of liquidation. For example, the committee will be sent all kinds of reports from the liquidator, which they may approve or reject. It is always the secured creditors who will recuperate their losses firstly, and only after this unsecured creditors will be eligible to receive their owed money.
Accumulating high debts which the company is unable to repay, will usually lead to the decision of putting the company into liquidation. There will be several creditors' meetings, where they will go through the company's actual financial status, and will be able to calculate an estimate of how much they will be able to recover from their losses, and in how much time.
The main role of the committee is to supervise the actions of the liquidator, and generally to supervise the whole process of liquidation. For example, the committee will be sent all kinds of reports from the liquidator, which they may approve or reject. It is always the secured creditors who will recuperate their losses firstly, and only after this unsecured creditors will be eligible to receive their owed money.
