Liquidation - what does it mean?
There are a range of reasons that can lead to a company being placed into liquidation - a process where the company’s assets are sold off, and the proceeds are distributed to satisfy liabilities and repay shareholders.

At BDO Stoy Hayward, our specialist team regularly works with directors of businesses facing financial difficulties, including company liquidation, as well as the full range of stakeholders including banks and other creditors. Our aim is to realise as much value as we can from the sale of assets in order to satisfy creditors affected by the company liquidation. Our in-depth knowledge of industry sectors plays a crucial role in this.

There are two forms of liquidation. A liquidation can either be solvent or insolvent. A solvent liquidation is handled through a Members’ Voluntary Liquidation procedure. Companies involved in this liquidation procedure are in fact able to pay all their creditors but can still be wound up simply because they are no longer useful. However, if a company goes through an insolvent liquidation, this form of company liquidation is always terminal.