In a Creditors' Voluntary Liquidation ("CVL"), the directors/shareholders decide to liquidate the company and appoint an Insolvency Practitioner to carry out the process.
Any assets are realised and debts are cleared as much as they can be; if any debts remain after this process, they are written off. All trading ceases, employees become redundant and the company ceases to exist.
For alternative options regarding corporate restructuring, please see our Corporate Insolvency and Restructuring pages.