DIFC
Creditors’ Voluntary Liquidations
A formal process for winding up insolvent companies under the DIFC insolvency framework.
What does this entail?
A Creditors’ Voluntary Liquidation (CVL) in the Dubai International Financial Centre (DIFC) is a formal insolvency procedure governed by DIFC Insolvency Law No. 1 of 2019. It is available where a company is insolvent and unable to meet its liabilities and the directors determine that it is appropriate to recommend to the shareholders that the company be placed into voluntary liquidation.
Once the required resolutions are passed, a DIFC approved Insolvency Practitioner, is appointed as liquidator. The liquidator takes control of the company, secures and realises its assets, adjudicates creditors’ claims, and distributes the available proceeds to creditors in accordance with the statutory order of priority.
Although the liquidator is formally appointed by shareholder resolution, creditors play a decisive role in the selection process. Where there are competing nominations from shareholders and creditors, the nominee supported by the creditors will prevail.
Get in Touch
Chris Iacovides
Chief Executive Officer
Andri Antoniou
Director - Licensed Insolvency Practitioner
Marios Kofteros
Director - Licensed Insolvency Practitioner
When is it appropriate?
This mechanism is appropriate where a company is unable to meet its financial obligations and an orderly, transparent winding-up is required. It is typically used where restructuring or rescue options are no longer viable, and where independent professional oversight is needed to protect creditors’ and directors’ interests and ensure full regulatory compliance.
How we can help
We advise directors and other stakeholders on process selection and timing, manage the liquidation from commencement through closure, deal with creditors’ enquiries and ensure statutory and procedural compliance with the DIFC framework.
Next steps
Contact our team for an initial, confidential discussion to explore the appropriate DIFC process, with no obligation.
Key Benefits
PrWinding-up within the DIFC framework
- Orderly process with professional oversight
- Clear path to realise assets and address creditor claims
- Creditor involvement and procedural transparency
- Ability to review transactions and pursue recoveries where appropriate
Experienced, Trusted Advisers
Our services are delivered by experienced, qualified professionals who follow a structured and transparent process, from initial assessment through to implementation. We combine technical expertise with a practical approach to ensure each engagement is managed professionally and focused on achieving appropriate outcomes for all stakeholders.