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Liquidation - Creditors' Voluntary Winding Up

Liquidation - Creditors' Voluntary Winding Up | Bestar
Liquidation - Creditors' Voluntary Winding Up | Bestar

Liquidation - Creditors' Voluntary Winding Up

Creditors' Voluntary Winding Up in Singapore

A creditor's voluntary winding up is a process where a company ceases its operations and sells its assets to pay off its debts. It's initiated when the directors believe the company cannot continue due to financial difficulties.

Here's a breakdown of the process:


  1. Declaration of Solvency:  The directors cannot be confident of paying all debts within 12 months (unlike a members' voluntary winding up).

  2. Creditors' Meeting:  Creditors vote on a resolution to wind up the company and appoint a liquidator (someone to oversee the process). Creditors can also propose their preferred liquidator.

Liquidation Process:

  1. Liquidator Takes Over: The appointed liquidator assumes control of the company, gathers assets, and sells them.

  2. Debt Repayment:  The liquidator uses the proceeds from selling assets to pay creditors according to a set order of priority (secured creditors are paid first, followed by unsecured creditors, and lastly shareholders).

  3. Company Dissolution:  After all debts and expenses are settled, the company is struck off the register and ceases to exist.


For more information on Creditor's Voluntary Winding Up in Singapore, you can refer to these resources:

How Bestar can Help

Liquidation - Creditors' Voluntary Winding Up

Bestar offers services related to liquidation, including Creditors' Voluntary Winding Up. Here's how we can assist:

  • Guidance and Expertise:  Our team has experience navigating the complexities of company liquidation and can guide you through the process.

  • Liquidator Appointment:  We are able to act as the appointed liquidator, handling the sale of assets, debt repayment, and company dissolution.

  • Documentation and Procedures:  We can help with the necessary paperwork and ensure all legal procedures are followed correctly.

  • Communication and Negotiation:  We can facilitate communication with creditors and potentially negotiate on your behalf to secure favorable terms.

Contact Bestar:  Contact us to confirm our specific expertise in Creditors' Voluntary Winding Up and inquire about our fees. 

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