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A Creditors’ Voluntary Liquidation (CVL) is a formal process used when an insolvent company can no longer pay its unpaid debts. The company directors initiate this process to appoint a licensed insolvency practitioner (the liquidator) who takes control of the company’s affairs, realises the company’s assets, and distributes the proceeds fairly among the company’s creditors. Unlike a court liquidation, a CVL is voluntarily chosen by directors once financial difficulties become unmanageable.
The Creditors’ Voluntary Liquidation process typically follows five key steps, including:
Cost-effective method of winding down your business
Put an end to hassling calls from creditors
Reduce stress and pressures from financial challenges
Solve your Directors Penalty Notice (DPN)
Mackay Goodwin excels in navigating the complexities of corporate financial distress, providing expert solutions and end-to-end support. Our proven track record and commitment to recovery make us a steady guide in uncertain times.
Closing a solvent company doesn’t have to be complicated. We handle the communication with stakeholders, manage the liquidation process, and ensure assets are distributed smoothly and transparently.
A Provisional Liquidator can help safeguard your company during uncertain times. We step in to take control, limit further damage, and protect the business while key issues are resolved.
If your company owes less than $1 million, you may qualify for this streamlined alternative to CVL. We’ll handle the process with clarity and care, helping you wind up the right way.
If your business is experiencing financial difficulties, it’s important to act early. The sooner you seek professional guidance, the more solutions may be available - whether that’s restructuring and turnaround strategies, or formal liquidation.
At Mackay Goodwin, our specialists provide clear, confidential advice to help you understand your options and protect your future. We’re here to support you with expertise, empathy, and practical solutions tailored to your situation.
Edwin is a valuable member of the senior Mackay Goodwin team, with a huge amount of expertise and experience in running a range of different Deed of Company Arrangement proposals, for Administrations across a diverse range of industry sectors, and in all states across Australia.
David has a wealth of experience across receiverships, voluntary administrations and liquidations together with restructuring and turnaround engagements. Growing up in Bathurst, NSW, David’s interest in agriculture and passion for motorsport translates to his hands-on approach in the insolvency industry. Taking upon a broad range of appointments, David provides a thorough analysis of the current situations his clients are facing and provides the best possible outcome for them and other stakeholders. David’s experience allows him to draw on a broad range of prior appointments and their unique nature to facilitate the survival of a business where possible by using achievable arrangements.
Mitchell has 20 years’ experience in corporate insolvency and restructure. Mitchell is a Registered Liquidator having working on many types of corporate appointments. He has managed complex liquidations and voluntary administrations in numerous industries with expertise in property, finance, manufacturing, IT and building and constructions. Mitchell brings value to appointments from start to finish, from marketing and having initial contact with clients to achieving exceptional outcomes.
Grahame Ward is a Registered Liquidator and Administrator with expertise in industries like property, tourism, transport, hospitality, and manufacturing. Since 1996, he has specialised in corporate and personal insolvency, reorganisation, restructuring, and crisis management. As a Chartered Accountant and Official Liquidator, Grahame is known for delivering timely and practical advice, especially in complex insolvency matters. He is actively involved in professional development through ARITA, sharing his knowledge as a workshop leader. Grahame is committed to achieving positive outcomes for stakeholders, offering reliable support during challenging financial situations.
Gavin King is a seasoned business advisor and insolvency expert with extensive experience in corporate restructuring and turnaround management. Over the course of his career, Gavin has helped numerous businesses navigate complex financial challenges, providing tailored solutions that maximise stakeholder value. Specialising in insolvency administration, he brings a hands-on approach to managing voluntary administrations, liquidations, and corporate workouts. With a proven track record of leading successful recovery processes, Gavin leverages his deep industry knowledge to guide businesses through periods of distress, ensuring they emerge stronger and more resilient.
Andrew Quinn is a seasoned professional in the insolvency and restructuring industry, serving as a Director at Mackay Goodwin. With a deep understanding of complex financial challenges, Andrew has guided numerous businesses through voluntary administrations, liquidations, and corporate restructurings. His industry experience spans across sectors including construction, hospitality, and professional services, providing him with a diverse skill set to address each client’s unique needs.
Andrew’s strategic approach focuses on achieving the best possible outcomes for all stakeholders while navigating businesses through periods of financial adversity. His commitment to providing tailored solutions ensures that businesses receive the support they need to recover and thrive in challenging times.
Once a creditors voluntary liquidation occurs, the business is wound up and the company ceases trading. The liquidator collects and sells the company’s assets, settles creditor claims, and pays priority creditors such as employees owed outstanding wages and superannuation. If there are insufficient assets, employees may be eligible for assistance through the Fair Entitlements Guarantee.
After debts are addressed, including those to government revenue offices and other unsecured creditors, any remaining matters are finalised. At this stage, directors are released from personal liability for company debt unless there has been misconduct or evidence of insolvent trading.
The creditors voluntary liquidation process generally follows this timeline:
These timeframes are approximate and may vary depending on the complexity of the company’s situation and any issues that arise during the liquidation.
A CVL is initiated by the company directors, not by the courts. Directors call a meeting when the business faces financial difficulties and can’t pay its unpaid debts. By choosing this route, directors aim to deal with outstanding creditors fairly and avoid the risks of insolvent trading, which can expose them to personal liability.
Once appointed, the liquidator manages the company’s affairs on behalf of the company’s creditors, including unsecured creditors and other unsecured creditors. This process contrasts with a court liquidation, which is usually forced by a creditor who is owed money.