Banks Creditors Secured Creditor Trade 
Hudson Weir
FEBRUARY 28, 2023
Those the business owes money to are known as creditors. In this blog, let’s look at which creditors are paid first if the organisation ultimately becomes insolvent and its assets are sold to repay the balance due (a winding-up or liquidation). Secured creditors include leasing companies and banks.
Hudson Weir
JULY 15, 2021
Sometimes, it is the only viable solution when trading difficulties make it impossible to continue. All the assets are sold (hence the term liquidated), and the cash used to pay back creditors, including HMRC and Companies House. However, for this article, we’ll focus on a Creditor’s Voluntary Liquidation (CVL).
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Hudson Weir
APRIL 15, 2021
A debenture is a document representing a loan agreement between a lender and a borrower, granting the lender security over the borrower’s assets. Debentures are typically used by traditional lenders like banks to provide funding to large companies. This gives the lender a means of collecting the debt if the borrower cannot pay.
Hudson Weir
JULY 8, 2019
CVL stands for Creditors’ Voluntary Liquidation , while CVA stands for Company Voluntary Arrangement. In both procedures, the directors’ duty is to the creditors of the company and not to the shareholders. Does the company continue trading, and what’s the role of the insolvency practitioner? It’s a question we often get asked.
Hudson Weir
JULY 26, 2019
Administration is a robust insolvency procedure for securing control when a company is insolvent and facing serious threats from creditors. The directors, or a ‘secured’ creditor (like the bank), can make an application to the court to appoint a licensed insolvency practitioner as an administrator. .
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