It’s not the end
Corporate Lifeline is a professional and highly experienced organisation based in Sydney, NSW with staff across Australia built to work closely with your company to guide you through the treacherous world of bankruptcy/insolvency and liquidation.
We will look at all the options available to help save your company. We provide free consultations and one of our experts will always be on hand to help your organisation. We undertake numerous liquidations each year and can provide you with the best advice in regards to Liquidating your company and we have Liquidators available in every major city.
Creditors Voluntary Liquidation
A Creditors Voluntary Liquidation is initiated by the company when the directors and shareholders believe that the company is insolvent.
The objective of a Creditor’s Voluntary Liquidation is to:
– Wind up the affairs of a company; and
– Provide for a fair and equitable distribution of the company’s property amongst its creditors.
Directors are able to relieve themselves of the legal consequences of operating an insolvent company and the burden of debt that cannot be repaid. Once a company is placed into Liquidation, creditor actions cease and are dealt with by the Liquidator.
Want more information on Liquidations? Read more here.
Alternatively, feel free to contact us and we will gladly provide you the information you need.
Receiverships
A Receiver or Receiver and Manager may be appointed by the court or by a secured creditor. A secured creditor has the capacity to appoint a receiver and manager by virtue of a charge or mortgage over the assets of the company. The charge can be non-circulating (fixed) and circulating (floating) over specific assets or circulating (floating) over all the assets of the company.
The advantages of Receivership are as follows:
– Avoid the expense of an Administration;
– Receiver does not need to report to all the other creditors of the company, only their appointor;
– Receiver has advantage of seven day rent free period in respect of property owned by others;
The disadvantages of Receivership are as follows:
– The moratorium provided for in a Voluntary Administration is not available to a Receiver and thus unsecured creditors are free to continue with recovery/enforcement action;
– During the receivership the director is no longer in control of the company’s business property and affairs;
– Unsecured creditors do not get to control the process;
– After discharge of the secured creditor debt the company is returned to the director and the company may be vulnerable to some other form of insolvency administration.