Winner of the "Insolvency & Restructuring Firm of the Year" award 2016
Winner of the "Insolvency & Restructuring Firm of the Year" award 2016
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Stop Winding up Petition Proceedings

 

Have you received a creditors winding up petition?

If your company has been presented or threatened by a duress creditor with a winding up petition you must act quickly and without delay. Contact us now because we can help to save your business and livelihood.

A creditors winding up petition is a very serious legal instrument and must be attended to immediately in order to prevent adverse consequence. The winding up petition is a short legal process that compels a company into compulsory liquidation through the court.

The first critical 7 days

The winding up petition against your company must be dealt with as a matter of utmost urgency. The first 7 days after having received the winding up petition is very critical. Any delay in successfully dealing with the winding up petition in that time can immediately result in very serious and disastrous consequences for the company.

Winding up petition being made public

If not dealt with immediately the winding up petition presented against your company can be made public any time after 7 days, therefore made available to all interested parties such as your bank, lenders, HM Revenue and Customs and your other creditors generally.

Preserve the company’s assets

Upon presentation of the winding up petition your company is prohibited from reducing any of its assets without obtaining leave from court. This means no payments to any creditor, no matter how much or for what reason, or disposal/reduction of your company’s assets. Any contravention to this is unlawful and subject to further proceedings against you personally.

Company’s bank accounts frozen

Usually your bank will be the first party to be informed your company is subject to a creditors winding up petition. Once your bank has been informed it has a legal duty to protect the company’s funds from being dissipated and will immediately and without notice freeze all the company’s bank accounts held. This action will usually bring about the swift demise of your company.

Supporting creditors

Once HM Revenue and Customs is informed of the winding up petition presented against your company it is their usual practice to join the same petition as a supporting creditor. This action by HM Revenue and Customs will prevent the winding up petition from being withdrawn by the creditor or dismissed by the court. Also, other creditors may follow in line with HM Revenue and Customs and support the winding up petition. This means for the winding up petition to be withdrawn or dismissed and your company to be saved from compulsory liquidation the petition debt, and the supporting creditors debts will have to be fully satisfied including related legal costs. This option is usually unachievable for most debtor companies and may be for your company too.

Proceedings against directors

Also, as directors you will need to be very careful about your actions for the period leading up to the presentation of the winding up petition against the company and up to the court hearing date. Your conduct in this period must come under close investigative scrutiny by the liquidator should a compulsory winding up order be made.

Any subsequent investigation resulting from a complaint usually by HM Revenue and Customs, a creditor or insolvency practitioner or official receiver could lead to section 212 misfeasance charges being brought against you for misconduct during the course of the company’s winding up proceedings. This is usually when directors have moved, transferred or sold the company’s assets after presentation of the winding up petition. Even transactions prior presentation of the winding up petition such as preference to another creditor or transactions made at undervalue. Such actions may result in director disqualification proceedings or worse.

We can help you

Our invaluable experience in dealing with creditors winding up petitions and the movement of assets and other property means we can certainly help to save your business. Contact us now and be sure to benefit from our expertise. Let us help you now before it is too late.