Service
Creditors’ Voluntary Liquidation (CVL) & Insolvent Debt Resolution
Proactive, director-led liquidation for insolvent companies seeking a fair, out-of-court statutory resolution.
Creditors’ Voluntary Liquidation (CVL) is an out-of-court insolvency process initiated by the directors and shareholders when a company is insolvent (unable to pay its debts as they fall due). By voluntarily appointing an independent Approved Liquidator, management takes a responsible step to stop aggressive creditor litigation, ensure fair asset distribution, and prevent further financial deterioration.
Why Initiate a CVL?
- Protects Directors: Demonstrates that directors acted prudently in the best interests of creditors, reducing exposure to wrongful trading claims.
- Orderly Framework: Halts individual legal actions, execution proceedings, and statutory demands against the company.
- Independent Oversight: Ensures company assets are realized transparently and distributed according to statutory creditor priorities.
Key Phases in a CVL
Board & Shareholders’ Resolution: Directors resolve that the company cannot continue business due to liabilities and convene meetings.
Creditors’ Meeting: A formal meeting of creditors is held to confirm the appointment of the Approved Liquidator and nominate a Committee of Inspection (COI).
Asset Safeguarding & Investigation: The Liquidator takes immediate control of assets, records, and bank accounts, and evaluates historical transactions.
Proof of Debt (POD) Verification: Creditors submit formal proof of claims for verification and adjudication.
Asset Realisation & Dividend Distribution: Funds realized are distributed according to statutory priorities under Malaysian insolvency law.
Our Other Services
Court Liquidation
Court-ordered compulsory winding-up management and private Approved Liquidator appointments under Section 465.
Monitoring Accountant
Independent financial surveillance and cash flow oversight for lenders, banks, and distressed borrowers.
Judical Management
Court-sanctioned corporate rescue mechanism providing immediate legal moratorium against creditor actions.
Office Hours
Monday to Friday - 9:30 am to 5:00 pm
LTC Corporate Recovery PLT
Contact Info
Lot 3A06, 4th Floor, Tower 2, Faber Towers, Jalan Desa Bahagia, Taman Desa, 58100 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur