Creditors Voluntary Liquidation (CVL) – A CVL is the voluntary winding up of an insolvent company. For a company to be placed into CVL, the company directors must recommend to the company shareholders that the company be placed into liquidation as a consequence of the company being insolvent. I.e:
- ● Cash flow insolvent – The company can no longer afford to pay its debts as and when they fall due.
- ● Balance sheet insolvent – The liabilities of the company exceed the value of the company’s assets.