COMMUNICATION

Our firm pays great attention to crystal clear communication with all our clients.

This is the foundation for the type of services we deliver and the clientele we want to work with.

Contact us;

Galway Office

Address:
The Halls
Quay Street
Galway City
Tel:
091 568 580
Fax:
091 563 442
Email:
info@petercoyne.ie

Clifden Office

Address:
1 Main Street
Clifden
County Galway
Tel:
095 211 41

Liquidation

If you need to discuss your situation we have more than 25 years experience in dealing with solvent & insolvent companies and would be happy to meet for a free consultation.

Liquidation/Insolvency

Insolvency is a condition of financial difficulty, and can apply to a company or an individual. It is an umbrella term under which fall many different procedures liquidation, receivership and administration.

Our service is competitive and is available throughout Ireland. Whether you or your client are facing insolvency or just experiencing the first signs of financial difficulty it is never too early to seek advice. Our team will help you examine the available alternatives and where necessary, liaise with anyone else involved.

What is Liquidation?

A company is a legal entity and it is a different legal person from it directors and shareholders. A company "dies" when it is dissolved and is no longer on the register of companies. The most important method of dissolving a company is through a liquidation. A liquidation is final and the company will not be in existence after the liquidation comes to an end.

What types of liquidations are available?

There are three types of liquidation available;

  • Members/Shareholders voluntary liquidation (MVL)
  • Creditors voluntary liquidation (CVL)
  • Compulsory Liquidation

The Shareholders Voluntary Liquidation is where a company goes into liquidation but it expects to pay all its creditors, employees, taxes and also pay the shareholders part, all or more than their ordinary capital. An insolvency practitioner is appointed by the members over the affairs of the company as liquidator.

The Creditors Voluntary Liquidation is where a company is insolvent i.e. it cannot pay its debts as and when they fall due and is forced into liquidation. An insolvency practitioner is appointed liquidator by the members/creditors.

A Compulsory Liquidation is where a company is forced into liquidation by one of its creditors (for not payment of debts) or the Secretary of State appoints a liquidator over the affairs of the company.

If you need to discuss your situation we have more than 25 years experience in dealing with solvent & insolvent companies and would be happy to meet for a free consultation.

What is Administration?

Once a company is in administration, it cannot be wound up without the court's permission. The process buys time for a business, perhaps allowing it to get out of trouble and trading again or for the administrator to rescue the company as a going concern.

If this is not possible, the administrator will to try to achieve a better result for creditors than if the company was wound up.

However, if neither of these options proves possible, the administrator will sell the company's property or the business itself so that at least a partial payment can be made to one or more secured or preferential creditors, such as employees or the bank.

What is Receivership?

Where a company has granted security over its assets to a debenture holder but is unable to meet repayments due to that debenture holder, the lender may be entitled to appoint an Receiver to safeguard the company's assets in lieu of repayments. The Receiver is entitled to sell these assets to pay any monies due to the debenture holder.

The Receiver owes his duty to the debenture holder, not the company or its creditors. The Receiver will sell any part of the business that can be sold as a going concern. The employees will usually transfer to the new owners of the business. Depending on the offers received the Receiver may sell the business to existing managers or shareholders.

However, it may not be possible to rescue even a part of the business.