Receivership & Liquidation
Sometimes it’s necessary to restructure a business through a receivership or liquidation process to allow the viable elements to recover and resume business.
Other times a company may have outlived its purpose or ceased trading due to retirement, for example.
A Receiver is appointed when a borrower defaults on a loan or is in breach of the terms of the loan.
A receivership differs from a liquidation because can take control of the business and its assets and look to repay the loan without necessarily closing the business. A liquidator is a person who winds up a company.
The Receiver takes control of the secured asset and must then realise the value of the asset.
They can do this by managing the asset or arranging for its sale.
Any proceeds realised from the asset are discharged to the lender or chargeholder and put towards the borrower’s debt on the asset.
A business can come out of receivership and resume trading in certain circumstances.
DHKN has extensive experience in Receiverships and can provide the following services:
- Act as a Receiver for a chargeholder
- Secure assets to safeguard lenders’ security
- Provide a detailed strategy to realise the value of the asset
- Optimise the return for lenders
Deciding to liquidate your Company is often the hardest part of a liquidation process. We can help you to assess the solvency of your company and decide if liquidation is the best option for your business. If so, we can act as liquidator to wind up your company and as liquidator, we will be responsible for carrying out the following tasks to successfully dissolve your company:
- Realise any assets in the business. This can mean collection of outstanding debtors, sale of stock or sale of fixed assets.
- Communicate with all creditors from the outset of the liquidation to the completion of the liquidation process.
- Arrange for the payment of any dividends to creditors in order of preference. This includes lending institutions, secured creditors, the Revenue Commissioners, trade and other creditors.
- Apply for employee redundancy entitlements and holiday or notice pay entitlements on behalf of the employee to the Department of Social Protection.
- Carry out statutory obligations such as reporting to the Director of Corporate Enforcement on the company and its directors.
Members Voluntary Liquidation
If you have a business that is solvent, but which you want to dissolve, we can carry out a Members’ Voluntary Liquidation of your company.
This is particularly useful where a company has
- outlived its purpose
- ceased trading possibly du to retirement or illness
- cash or other assets which are to be extracted
- to restructure for strategic reasons
Typically, this is a straightforward process that facilitates the extraction of the net assets of the Company and the company is dissolved within a relatively short period of time.