At BCR Advisory, we have wide-ranging expertise with businesses that are, or may become, insolvent and need to be wound down in an orderly manner. This can involve all or just part of the business that has not been performing.
The three main vehicles for achieving these outcomes are receivership, creditors’ voluntary liquidation and court liquidation.
BCR Advisory will act for secured lenders as receivers and managers to recover debts which are secured over a business and/or its assets.
Following the assumption of control under the terms of the security, we then devise a recovery strategy involving continued trading, asset or business sale, wind down or some combination of these measures.
The course taken will be pursued after consultation with the secured creditor and, depending on circumstances, company management, employees and other key interested parties.
Creditors’ voluntary liquidation
BCR Advisory has many accumulated years’ experience in creditors voluntary liquidations. These liquidations typically occur by either of two means, viz:
- At the instigation of the insolvent company’s shareholders. Directors convene a meeting of shareholders, who resolve to liquidate the company.
- The outcome from a Voluntary Administration. A DOCA may not be deemed the best option and winding up is judged to be more appropriate, or a DOCA may not be achieving the desired outcome and winding up is therefore the best alternative.
In either case, we assume control of the company’s assets and business. We formulate a plan to sell the assets and its operating business if it is still trading. The aim is to maximise the value realised and, by that, the best return to creditors.
Key elements of the Creditors Voluntary Liquidation process include:
- Asset sale and/or business sale.
- Investigation and reporting to both creditors and the Australian Securities and Investments Commission (the corporate regulator).
- Pursuit of voidable recoveries if appropriate.
It is also often relevant to consider the potential effect on directors and others who may have personally guaranteed company debts.
BCR Advisory is regularly appointed to wind up a company’s affairs, by court order. Typically, the winding up is a result of a court application by a creditor of the company.
Occasionally, we may be appointed Provisional Liquidators as an interim measure. Again, this is commenced by a court order. A Provisional Liquidation is only a short term appointment, enabling a temporary hold on the company prior to a final decision being made by a subsequent court hearing.