Restructuring and Business Liquidation Support in India Restructuring and Business liquidation support involves a comprehensive approach to navigating the challenging financial situations within a business or company for liquidation works. It covers strategic measures to reorganize and optimize the business structure, which is undertaken in response to financial issues or a need for operational efficiency. Our experts guide businesses through this complex process with a focus on key elements such as restructuring and liquidation. Restructuring involves the evaluation and modification of a company's operational, financial and strategic aspects to enhance its overall performance and sustainability, and this may also involve debt restructuring changes in management or the realignment of the business units to ensure long-term sustainability. Our business liquidation support specifically addresses scenarios when winding up the company is necessary due to insolvency, bankruptcy, etc. Our team of professionals ensure compliance with legal requirements while maximizing the returns for the stakeholders and performing a proper dissolution of the company. Why Choose Enterslice for Business Liquidation Support Services? Enterslice has a proven track record, boasting a remarkable 99% success rate in guiding businesses through the liquidation process. Our expert-tailored solutions provide businesses with the confidence to navigate the challenging financial transition successfully. Whether it’s the implementation of debt resolution strategies or facilitating asset liquidations, our experts ensure the financial stability of businesses in times of change and uncertainty for insolvent companies. Prologue about Liquidation Support In the intricate landscape of business operations, company liquidation support emerges as a support system for companies facing financial challenges or planning strategic transitions. Liquidation support comprises a range of services designed to guide businesses through the entire process of winding up the companies by selling assets, controlling operations, and setting financial obligations. This liquidation support becomes important when a company, whether voluntarily or compulsorily, decides to close the company. Our experts have expertise in the area of liquidation support, which encompasses strategic planning, legal compliances, valuation of assets and execution of the liquidation process. As companies navigate the complexities of dissolution, liquidation support serves as a reliable companion by ensuring transparency, adhering to a legal framework and optimizing the outcomes for all the shareholders and creditors. Explanation of Section 33 of the IBC, 2016 for the Initiation of Liquidation Section 33 of the Insolvency and Bankruptcy Code, 2016 outlined the condition to allow the Adjudicating Authority or the National Company Law Tribunal (NCLT) to issue an order for the commencement of the liquidation process in various situations, such as when the liquidation usually happens when a resolution plan has not been approved within the allotted time frame as a result then the NCLT may issue an order for the start of the liquidation process and if the resolution process is not successful in getting a resolution plan approved before the maximum amount of time permitted for the corporate insolvency resolution process of Corporate Insolvency Resolution Process (CIRP) expires, also, when the NCLT may order the start of the liquidation process if the Committee of Creditors (CoC) votes to liquidate the corporate debtor by a majority of at least 75% of the voting shares. Also, if no resolution plan is authorized during the CIRP, the resolution professional may, under specific conditions, apply to the NCLT for the start of liquidation. Company Liquidation Support services offered by Enterslice Our experts offer comprehensive services in business liquidation support, and some of the key services are stated below Strategic Planning to Liquidate a Company Our strategic planning services for business liquidation support are to develop a customized strategy for business liquidation based on the specific needs and circumstances of the business. Legal Compliance Our expert advice ensures adherence to all the legal requirements and regulations governing the business's liquidation processes. Our experts provide a meticulous approach to ensure that the liquidation process aligns with the regulatory framework and requirements for the company wind-up support. Debt Resolution in the Insolvency Process Our experts assist in implementing strategies to resolve outstanding debts as part of the liquidation process. Our experts navigate the complexities of negotiation with creditors and aim to secure favourable terms for their well-being by exploring negotiation, debt restructuring, or settlement options to minimize the financial impact on the company or business. Evaluation of Assets and Liquidation Our experts conduct assessments in the liquidation of company assets and implement effective strategies for their liquidation to maximize the return for the businesses. Our professionals assess and maximize the value of their assets during the liquidation process by performing a detailed evaluation of the company’s assets and providing the strategy for liquidating these assets to generate maximum returns for stakeholders. necessary papers Filings Our experts handle the preparation and submission of all the necessary Paper works required for the liquidation process during the insolvency proceedings. How will Business Liquidation Support work? Liquidation is a complex process of closing or liquidating your company, which involves selling off a company's assets to pay its debt and distributing the remaining assets or funds among the stakeholders or the company's creditors. The process of working the business liquidation supports the company in liquidation such as Decision Making The decision to liquidate a business is made when the business faces financial distress. Challenges and other alternatives so our experts assist in the decision-making for the dissolution of the business. Appointment of the Licensed Insolvency Practitioner The liquidator is appointed by the company's board and shareholders or is ordered by the court in the case of insolvency. Then, the liquidator takes control of the company, and assets are sold to perform the entire liquidation process. However, our experts work as liquidators in the liquidation process by providing company wind-up support and distributing its assets to claimants. Notification to Creditors for Liquidation Proceedings Our business liquidation support services help in the entire process of liquidation and send notifications to the creditors of the companies to submit their claims. Preparation of the Valuation of Assets Our experts conduct a thorough valuation of the company’s assets for the proper distribution at the time of liquidation. Distribution to Shareholders There should be a proper distribution among the shareholders and creditors so our experts can perform a proper assessment of the distribution of assets to act in the best interests. Closing of the Company Once all the assets have been liquidated and debts have been settled, then our experts will apply to the relevant regulatory authority or court to officially dissolve the company by providing the proper reports to creditors and authorities mentioning all the details, such as details of the assets sales and distribution of assets. Type of Liquidation Procedure There are various types of Liquidation processes, such as Voluntary Liquidation of a Company There are two types of voluntary liquidation processes: a members' voluntary liquidation process and a creditors' voluntary liquidation process. When the company is insolvent and not able to pay the debts, then it decides to exit as a legal entity voluntarily. Compulsory Liquidation of a Company Compulsory liquidation is a process performed when the court orders liquidation, which is initiated by the creditor, shareholders, or regulatory authorities when a company is not able to meet its financial obligations. It also happens when the court grants the winding up of the company due to non-compliance and fails to perform legal obligations or faces financial distress. Liquidation Process of Company The company liquidation process involves various key aspects, and the details will vary depending on the company's circumstances. So, here is the general outline of the company liquidation process Resolution by the Board The decision to liquidate a company begins with a resolution passed by the company's board of directors or shareholders, or sometimes, the decision of dissolution is ordered by the court in situations of insolvency. Appointment of Liquidator A liquidator is appointed to oversee the liquidation process. The liquidator can be an insolvency professional, an external expert or the person appointed by the company. Notification to Creditors The creditors and shareholders are formally notified of the decision to liquidate a company by public announcements and direct communications. Company Assets Valuation The liquidator conducts detailed asset valuations of the company's assets, including property or assets. Public Notice on Dissolution The dissolution of the company has been published in newspapers or the official gazettes. Distribution of Funds There should be a settlement of debts and distribution of funds among the shareholders and creditors for the smooth dissolution of the company. Closing of the Company When all the assets have been liquidated, settlement of debts and distribution of the funds gets completed. Then, the liquidator will inform the regulatory authority or court to dissolve the company as per the records and remove the company name from the official register. Requirement of the Company Wind up support Company wind-up support is required when the company enters liquidation due to financial distress or any other issues. Here are the common reasons below for the key requirement of company wind-up support such as Insolvency The primary reason for liquidation is insolvency, where a company is unable to meet its financial obligations, and if the company's liabilities exceed the assets in such scenarios, our company wind-up support is required to settle the debts and distribute the assets to creditors and shareholders. Bankruptcy If a company is not able to restructure its debts or find a resolution plan to file for bankruptcy, it leads toward the liquidation of assets to pay creditors and shareholders. Operational Failure The companies may require company wind-up support when they face operational failures due to continuous losses, not being able to generate revenue or improper management strategies. Disputes among shareholders The internal conflicts among shareholders on the company's directions or management will lead to the company's requirement to wind up support from our experts in the liquidation of the company. Lack of Funding Insufficient capital or the company's inability to secure funding to support ongoing operations can be a critical part of performing liquidation, so our company's wind-up support services help in the liquidations. Steps for Liquidating the Business Assets by our Business Liquidation Support Liquidating the business assets involves a structured process to sell, transfer and dispose of the assets to generate the debts for settling debts and distributing the remaining among the shareholders and creditors. So, here are key steps for liquidating business assets with the assistance of a business liquidations support services such as Assessment Our experts conduct a thorough assessment of all the business assets or properties related to the company for the liquidation process, and assets are sold to clear the debts. Valuation of Assets Our professionals engage in valuing the assets accurately, and this step is important to proceed toward the liquidation process. Notification to Shareholders and Creditors Our experts notify the relevant authorities, such as creditors, shareholders, etc., about the liquidation to ensure transparency and compliance with legal obligations. Sale of Assets Our experts provide business liquidation services support for the sale of assets by various methods, such as negotiation with buyers or other methods depending on the nature of the assets for business debts. Settlement Our experts help in the allocation of the assets to settle debts and distribute the settlement to prioritize payment based on the hierarchy mentioned under the Insolvency and Bankruptcy Code. Financial Reporting Our experts maintain accurate financial records for submission to the authorities throughout the liquidation process. Distribution of Funds Our experts assist in distributing the funds accurately to the shareholders and creditors and settle all the debts. Closure Our experts prepare and file the required necessary papers for the closing of the company, and the company will be struck off their names from the company house official register. Advantages of Business Liquidation Support Engaging in Business Liquidation support services offers various advantages to businesses facing financial challenges and seeking company wind-up support, such as Expert Assistance Our business liquidation support services bring in-depth knowledge and expertise to assist companies in the complexities of the liquidation process. Legal Compliance Our company's wind-up support services ensure that the liquidation process complies with all the legal and regulatory requirements for liquidation. Valuation of Assets Our company wind-up support services have expertise in asset valuation and provide an accurate valuation to maximize the return during liquidation. These services optimize the processes to efficiently liquidate assets. Tailored Solution Our company wind-up support provides tailored solutions to the circumstances of each business and ensures the liquidation strategy for the specific challenges and goals of the company. Business Liquidation Support as an Exit Strategy The business liquidation support serves as a strategic exit strategy for companies facing financial challenges and undergoing a restructuring; our expert assistance in this critical phase of business and offers comprehensive assistance in developing a liquidated strategy, considering factors such as debt resolution, assets liquidation, and compliance with the legal requirements. Our experts provide clear insights into the financial implications, potential challenges and legal obligations related to the liquidation. The exit strategy will be due to financial distress, market shift or strategic decision, business liquidation support to exit with transparency by minimizing disruptions and security a stable financial future for all involved parties. The liquidation is typically an option for the business if it becomes insolvent or is not able to clear the dues or debts. However, by performing the liquidation process, the assets will be distributed to the creditors and shareholders for the business to an end.