Restructuring & Insolvency
Court-appointed liquidations are similar to creditors’ voluntary liquidations in their process. In both cases the subject company is insolvent, the difference lies in how, and by whom, the liquidator is appointed.
Below is a summary of the unique features of a court-appointed liquidation.
Who appoints the liquidator? In a court-appointed liquidation the creditor, or other party, who has petitioned the winding up of the company will usually nominate a liquidator to be appointed. If the Court is satisfied
with the winding up application, the Court makes orders for the nominated liquidator to be appointed over the company. If no liquidator is nominated, the Court may select the liquidator.
The process of a court-appointed liquidation ...