Kenmark had announced they are starting liquidation procedure. What is a difference between bankruptcy and liquidation of the company? That were always brought some misunderstand by ordinary investors.
Liquidation have 2 categories, one is call voluntary liquidation by shareholder, another one is apply by company's debtors. The second one almost same as bankruptcy but not 100% be bankruptcy. Bankruptcy need to apply another procedure to executed and normally handler by insolvency department. Liquidation enforced by debtors usually faster than applying the bankruptcy procedure. Usually debtors will appoint a receiver step in to company to safe guard the specific charged property and 100% protect specific debtors who appointed them. Bankruptcy procedure will handler by insolvency officer and all assets based on specific guidance for distribution to all debtors. The specific assets may not 100% well maintain by officer. Here hard to describe out one by one its law and procedure.
The company also can apply section 176 of company law to restructure it before the liquidation procedure. Because most of the outstanding loan and debts will eliminated by way of restructuring. It will help receiver easy to monitor and control the balance of the assets.
Liquidation have 2 categories, one is call voluntary liquidation by shareholder, another one is apply by company's debtors. The second one almost same as bankruptcy but not 100% be bankruptcy. Bankruptcy need to apply another procedure to executed and normally handler by insolvency department. Liquidation enforced by debtors usually faster than applying the bankruptcy procedure. Usually debtors will appoint a receiver step in to company to safe guard the specific charged property and 100% protect specific debtors who appointed them. Bankruptcy procedure will handler by insolvency officer and all assets based on specific guidance for distribution to all debtors. The specific assets may not 100% well maintain by officer. Here hard to describe out one by one its law and procedure.
The company also can apply section 176 of company law to restructure it before the liquidation procedure. Because most of the outstanding loan and debts will eliminated by way of restructuring. It will help receiver easy to monitor and control the balance of the assets.
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