A Creditors' Meeting (also known as a Meeting of Creditors) is usually convened days after a company becomes insolvent to:
- Explain what went wrong
- Appoint an insolvency practitioner (IP)
- Agree the IP's fees
- Vote on how to move forward with the business.
Creditors' Voluntary Liquidations (CVLs) commence with a virtual or physical Meeting of Creditors. This meeting must convene no more than 7 days after creditors receive notification of the liquidation.
The procedure is slightly different for creditors in a Company Administration, if a company uses a Company Voluntary Arrangement, or when an individual utilises an Individual Voluntary Arrangement (IVA).
In these instances, the Meeting of Creditors takes place within 14 days of the proposal being distributed. Similarly, the Creditors' Meeting takes place 10 weeks after a company is placed into Administration.
There are no legal guidelines or restrictions in regards to an insolvency practitioner (IP)'s remuneration. As a result, IPs discourage creditors from attending by charging excessive fees to hold meetings.
The first physical Meeting of Creditors is where creditors can get empowered, and develop an insolvency strategy.
I&L will take instructions on your behalf to attend Creditors' Meetings, and represent your interests. Oftentimes we connect with other creditors to stimulate significant support prior to the meeting because unity is strength.
Insolvency procedures are complicated and you will need expert advice and support. I&L can help you to form a committee of creditors, and advise as to what's in your best interest. Call 020 7504 1300 now for free and confidential advice…