My development company has been served with a winding up notice by a creditor and a provisional liquidator has been appointed. This is frustrating since although we’ve had some cash flow problems our current project is almost finished and I’ve found a purchaser for it. What does this mean for me?
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Answer by Kelly Angus, Adelaide 5000 SA
- A provisional liquidator can be appointed to take interim control over a company’s assets and affairs.
- For example a provisional liquidator may be appointed following the filing of a winding up application where the company’s assets are at risk and must be protected until the application is determined.
- The appointment is ‘provisional’ as a winding up order may not necessarily be made in which case control of the company would return to you.