The following can apply for the appointment of a Provisional Liquidator:
The Provisional Liquidator’s principal duty is to preserve the status quo, until the Court can determine whether the company should be wound up. A Provisional Liquidator may trade-on a company’s business.
A provisional liquidation is an interim insolvency administration. Most provisional liquidations end because the company is wound up. However, in some circumstances the company’s financial affairs are reorganised, the provisional liquidation ends and the company is restored to solvency.
The main advantages of a provisional liquidation are:
Provisional liquidation is a relatively infrequently used form of insolvency administration.