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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:


Initiation:


  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.


Resources:


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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