Liquidator Services

Q: When does liquidation happen under the IBC?

Liquidation generally occurs when the resolution process does not result in an approved plan within the permitted time, the Committee of Creditors decides on liquidation, or a resolution plan is contravened, shifting the process from revival to realising and distributing value.

Q: How are proceeds distributed in liquidation?

The Code prescribes a specific order of priority - the waterfall - determining the sequence in which classes of stakeholders are paid from liquidation proceeds. The Liquidator must follow this order strictly so distributions are made correctly and fairly.

Q: Can the business still be sold as a going concern in liquidation?

In appropriate cases the Code allows the Liquidator to explore selling the corporate debtor or its business as a going concern, preserving more value and jobs than a piecemeal asset sale, considered where feasible and beneficial.

Orderly, Fair Realisation of Assets and Distribution to Stakeholders Under the IBC

When a corporate debtor cannot be revived through resolution, the process moves to liquidation, and a Liquidator is appointed to bring the company's affairs to an orderly close. The Liquidator takes custody of the assets, forms the liquidation estate, verifies creditor claims, realises the assets, and distributes the proceeds among stakeholders in the strict order of priority laid down by the Insolvency and Bankruptcy Code. Handled well, liquidation maximises recovery and treats all stakeholders fairly.

Our Liquidator services are provided by a registered Insolvency Professional who manages the liquidation with diligence, transparency, and full compliance with the IBC. We work to realise the best value from the assets and distribute proceeds correctly and fairly. This role follows the Resolution Professional stage, relates to voluntary liquidation for solvent companies, and sits within our overall insolvency services.

Our Liquidator Services

Taking Custody of Assets

Taking control and custody of the corporate debtor's assets and records.

Liquidation Estate

Forming the liquidation estate from the assets available for distribution.

Claims Verification

Receiving and verifying the claims of creditors in the liquidation.

Asset Realisation

Realising the assets through sale to maximise recovery for stakeholders.

Distribution of Proceeds

Distributing proceeds in the order of priority prescribed by the Code.

Compliance & Closure

Ensuring compliance and completing the process through to dissolution.

Benefits of a Diligent Liquidator

An orderly, well-managed close to the company's affairs
Maximised recovery through effective asset realisation
Fair, correct distribution in the order of priority
Transparent verification and treatment of creditor claims
Full compliance with the IBC throughout the process
A clear path to final dissolution of the company

Frequently Asked Questions

What does a Liquidator do?

A Liquidator is a registered Insolvency Professional appointed to wind up a company that is being liquidated. The Liquidator takes custody of the assets, forms the liquidation estate, verifies creditor claims, realises the assets through sale, and distributes the proceeds among stakeholders in the order of priority prescribed by the IBC, before the company is dissolved.

When does liquidation happen under the IBC?

Liquidation generally occurs when the corporate insolvency resolution process does not result in an approved resolution plan within the permitted time, or the Committee of Creditors decides on liquidation, or a resolution plan is contravened. At that point the process shifts from attempting revival to realising and distributing value.

How are proceeds distributed in liquidation?

The Code prescribes a specific order of priority — often referred to as the waterfall — that determines the sequence in which different classes of stakeholders are paid from the liquidation proceeds. The Liquidator must follow this order strictly, ensuring distributions are made correctly and fairly according to the law.

Can the business still be sold as a going concern in liquidation?

In appropriate cases, the Code allows the Liquidator to explore selling the corporate debtor or its business as a going concern, which can preserve more value and jobs than a piecemeal sale of assets. Where feasible and beneficial, this option is considered as part of realising the best outcome for stakeholders.

Who can act as a Liquidator?

Only a registered Insolvency Professional can act as a Liquidator under the IBC. The role requires careful asset management, transparent dealings with creditors, correct application of the priority rules, and strict compliance, since the Liquidator is responsible for fairly closing out the company's affairs.

An Orderly, Fair Wind-Down

Liquidator services delivered by a registered Insolvency Professional under the IBC.