Creditors' Voluntary Winding Up

Creditors' Voluntary Winding Up is a process where a company that can’t pay its debts decides to close down with the approval of its creditors. It starts when the company's directors realize it can't continue operating and call a meeting with creditors to propose a winding up plan. If the creditors agree, an appointed liquidator takes charge of selling assets, settling debts, and distributing any remaining funds to creditors. This process aims to minimize losses for creditors and ensures a fair distribution of the company's assets. It’s a structured way to handle a company’s financial difficulties.