Creditors Voluntary Liquidation (CVL)
The Situation
The Company produced food packaging for major supermarkets and food retailers and owed an outstanding debt to a secured creditor. In addition to this there were conflicting ownership issues surrounding plant, equipment and intellectual property.
The Solution
As Liquidators, we began our process with the realisation of large quantities of specialised plant and equipment in the packaging industry. We liaised with the Company’s customers with respect to ongoing supply and assessed the complex employee entitlement issues present.
The Outcome
We engaged a national auctioneer using their online auction process to solve the complex asset realisation. Due to insufficient company record keeping the asset realisation process was difficult and time consuming. It was also challenging to determine whether the ownership rights to the tooling moulds remained with the company or the customer. We were able to provide a successful outcome with a substantial payment to the secured creditor with respect to the outstanding debt.