In our capacity as liquidating agents, trustees and supervisors, we frequently effect the sale of office furniture, computer equipment and inventory using both public auctions and private buyers. We are also practiced at negotiating private sales of intangibles such as patents, domain names, 800 numbers and contingent future revenue streams.
Employee and Benefit Issues
Companies that choose liquidation over bankruptcy as the mechanism by which to wind-down operations are usually unfamiliar with the protocols for terminating employee benefit plans such as 401(k) or Section 125 plans and the procedures for closing out state or federal payroll tax accounts. We have staff who specialize in employee benefit plan terminations and liquidations, as well as accountants who are knowledgeable about the preparation of annual plan filings required by the Dept. of Labor. Our bookkeepers will ensure that: all final payroll returns are processed by your payroll preparer, W-2’s are printed for future remittance and all payroll accounts in the states in which you conducted business are closed subsequent to the submittal of final returns.
Landlord and Creditor Issues
When a business winds down operations outside of bankruptcy, it often has limited leverage with which to negotiate payment terms on outstanding lease and payables obligations. As a disinterested party, V&L professionals can encourage quick deal-making that meets the commercial interests of both parties.
After all assets have been liquidated, we will pay off creditors based on the priority ranking delineated in the U.S. Bankruptcy Code. To the extent that there are excess funds after all creditors have been paid in full, pro rata distributions to equity holders will be issued.
To start the statutory clock ticking on the three-year dissolution process, V&L will ensure that a certificate of dissolution is filed with the Secretary of State’s office in the state in which the company incorporated. Every effort will be expended to ensure that all assets are liquidated, all obligations paid in accordance with fund availability and all pro rata distributions issued to shareholders in order of their priority rights, prior to the running of the three-year period.