Where a firm is struggling financially and unable to continue trading maybe because of a recession in organization and the weight of its arrearages, the director or supervisors might determine the most effective course of action is to shut business. This process is known as lenders voluntary liquidation. In essence, the business's lenders agree to liquidate the possessions of the company as well as take a share of them for Damaged and Obsolete goods . An Insolvency Specialist will be selected to sell off the firm. Among the liquidator's duties is to attempt and also sell the properties of the company for the best cost. Typically the liquidator will certainly get an evaluation and afterward use the assets to the highest bidder. Now, there is nothing to stop a director of the original service establishing a brand-new company and making a bid for any or all of the assets which can after that be made use of in the brand-new venture. By doing this, a new firm can be established b