The Insolvency Service has just released its Creditors’ Voluntary Liquidation (CVL) Research Report. The purpose of this report was to ascertain whether the recent reforms in 2017 on the CVL process had, in fact, made the process more efficient and increased the returns to creditors.
Analysis was performed on a randomly sampled dataset of 2,717 completed CVLs which started in 2017.
Efficiency was assessed through three quantitative measures: time to complete the CVL, associated costs, and recovery rates for creditors.
Time: 6% of the sampled cases were ongoing at the time of data collection. The median duration to complete a CVL was 712 days.
Cost: The median cost, represented as fees relative to the estate’s value, was 163%.
Recovery…
