Anyone know a cheap way to liquidate a company?

MD2510

Hi

Unfortunately I have reached a position where I have to wind up my company. However I don't want to pay €20,000 for the privilage.

Is there a cheaper option?

Niall_G

"Winding up" your company should only cost a few hundred euro, whether you do it yourself or pay to have it done (see cro.ie for info). However, you can only do this if the company does not have net liabilities. Liquidations (which can cost the amount you quote depending on complexity) are required though if there are net liabilities or for tax planning purposes if there is a high level of funds which the shareholder wishes to extract.

MD2510

Hi

Thanks for the info, unfortunately I didn't explain myself properly. I have outstanding creditors so my accountant recomended me to a liquidators, Kavanagh Fennell, as apparently they are not allowed to do it themselves.

However these guys have said that I will need to find 20,000 for them up front. There must be a cheaper way of doing this?

viztopia

try pricing around. while kavanagh fennel are one if the better known firms to do a liquidation they are also that busy they can name their price almost!! try contacting Tony Mc Bride in www.flco.ie you have to be careful of who you get to do this as there are a lot of accountants attempting liquidations who may not know what they are doing as it is a specialised area.

Niall_G

Second Viztopia

MD2510

That is great thanks,

I will get a couple of quotes and see who comes out on-top. Any other suggestions of who I should go to will be more than welcome.

searay

The cost of a liquidation depends on:

1. The size of the company, the amount and type of assets that the liquidator has to dispose of and the complexity of disposing of them.
2. The number & extent of creditors involved.
3. Whether or not the directors have acted in a timely manner in liquidating the company. The liquidator is legally required to review how the directors acted.
4. Whether or not the directors are to be restricted from acting as directors in the future.

Any liquidator giving you a quote will need to assess those circumstances in advance, but there are ways to address them. In my opinion if you are being advised now by your accountant to liquidate you need to do so quickly to minimise the chances of being restricted in the future.

If you want some advice on who to contact, depending on location and the above factors, please PM me.

lecheile

MD2510 wrote: »

However these guys have said that I will need to find 20,000 for them up front. There must be a cheaper way of doing this?

Md2510 - a simple members' winding up is likely to cost you €2000, where there are creditors seeking a winding-up and not likely to be funds to cover is will cost more but certainly would want to be very large and messy to cost €20k. If interested PM me and I can recommend my accountant who has handled a number of liquidations in which I have been involved.

jp889

MD2510 wrote: »

I don't want to pay €20,000 for the privilage.

Is there a cheaper option?

I am also in a similar situation - cost being bandied about is €15k. This sounds like a lot to me... whilst we have a debt issue we only really have one large creditor and the business is quite straightforward. Any thoughts on how we can do it cheaper much appreciated.

searay

If there is only one significant creditor, you could look at entering into an informal scheme arrangement with them where they agree to accept a settlement for the debt. It may be to their advantage to do so rather than see funds from the company go in paying liquidation fees. If that's done you can go for a members voluntary liquidation or strike-off which costs much less.

If you go the liquidation route, it is important that you chose a liquidator who knows what they are doing and will finish the job off quickly so you can put it behind you.

PM me if I can help you.

jp889

Coming to some kind of agreement would be preferable but not sure that it will be possible in this case.
Think that liquidation is probably the route but need it to be quick and efficient as you mention so I can get on with things.

viztopia

try the following link;

http://www.irishliquidations.ie/

i recomended another firm to a poster here and they came back to me saying that they got a better price from the above firm

jp889

going to meet them this afternoon to see what comes of it.
Accountant recommending kavanagh fennell as per poster above. Fees pretty high though.

silverdawn

hi there, i know this thread has not been active for some time but i have a question..... I am a former employee of a company who went into liquidation last year and im owed just under €10k in wages etc ....Most of this moniey i will get through the insovency fund from the DETI as the company sold all its assets before liquidising and cleared bank loans.

My question is- when the liquidator has his report done in may, as a creditor do i have a right to a copy of his findings on the company..??

I have reported my ex-employers to the Office of the Director of Corporate affairs for fraudilient Trading, Preferential Creditors Payments and so on..... Thanks in advance

searay

The liquidator is obliged to submit his report to the ODCE but is not obliged to provide it to the creditors.

Options available to you are:

Detail your concerns to the liquidator. It's then up to him to investigate and consider inclusion in his report.

Were you appointed to the committee of inspection?, This committee is appointed on at the creditors meeting and the liquidator reports to the committee and this is a good forum to be kept appraised of what's happening and raise any concerns you have.

kennyb3

Wow, just came across this thread and the quotes bandied about seem huge. Obviously it depends on the complexity of the situation but most liquidations we ve undertaken cost clients €3k - €10k. If anyone wants to contact us hit my username for a link to our website or alternatively PM me.

R3al

viztopia wrote: »

try pricing around. while kavanagh fennel are one if the better known firms to do a liquidation they are also that busy they can name their price almost

a sign of the times that one of the few growth industries in this country is the field of liquidating other businesses