In some instances, a formal winding up is the appropriate outcome for owners, creditors and other stakeholders.

This can be done either via a Court application (usually by a creditor) or the shareholders voluntarily winding up the company.

The role of the liquidator is to realise the remaining assets of the company. This may involve the sale of the business assets as a going concern.

The liquidator also has an obligation to investigate the company’s affairs and report to creditors and the Australian Securities and Investments Commission in relation to the causes of the company’s failure.

A liquidation will also involve the investigation and where commercial, the recovery of antecedent transactions including voidable preferences and claims for insolvent trading against the directors and other parties.

Partners of BPS Reconstruction have worked on a number of significant liquidations including the Pyramid Group, HIH Insurance and other matters.