Obtaining an Injunction to Restrain the Presentation of a Winding-Up Petition: A Vital Step for Your Business

The presentation of a Winding-Up Petition can have devastating consequences for your company. If not addressed swiftly and appropriately, it can tarnish your business’s reputation and, in the worst-case scenario, lead to its demise. Faced with a statutory demand for debt, your company must act fast to prevent the presentation of such a petition.

At Insolvency and Law, we understand the urgency and importance of disputing a debt before it escalates to a Winding-Up Petition. Whether through a counterclaim or cross-claim, it’s crucial to address the issue promptly. If payment is required, it should be made well before the petition is presented to avoid unnecessary complications.

When to Seek an Injunction

Sometimes, despite your best efforts to resolve the matter, a creditor may persist unreasonably in their attempts to present a Winding-Up Petition. In such cases, it may be necessary to seek an injunction from the court to restrain the presentation of the petition. This legal step can provide your company with vital protection against an unjustified or malicious winding-up attempt.

To successfully obtain an injunction, you’ll need to engage an expert to draft a comprehensive letter of response to the statutory demand. This letter should clearly outline the grounds for disputing the debt, demonstrating that your company has reasonable and substantial reasons for contesting the claim.

Crafting a Strong Response

In responding to the creditor, several strategies can be employed to protect your business. One option is to request that the creditor not present or advertise the petition without prior notice. Alternatively, you can warn the creditor that if they proceed with the petition, your company will apply to strike it out as an abuse of process.

However, if the creditor still insists on presenting the Winding-Up Petition, your next step would be to apply for an injunction. It’s important to note that the court will only consider this application if you can provide evidence of a genuine and substantial dispute regarding the debt or the fairness of the petition.

Preparing Your Injunction Application

The application for an injunction involves preparing and submitting specific forms, which are available on the Insolvency Service website. Additionally, a witness statement from an officer of your company will be required. This statement should detail:

• The grounds on which the debt is disputed
• Any relevant correspondence between the parties
• A financial summary of the company, including balance sheets and forecasts

Common Grounds for Disputing a Debt

Several common grounds can be cited to dispute a debt and seek an injunction, including:

• The petition constitutes an abuse of process
• The petition is bound to fail
• Your company has a genuine counterclaim or cross-claim that reduces the debt to less than £750
• The petition is unfair
• There is an ulterior motive behind the petition other than genuinely seeking to wind up the company

Expert Assistance at Every Step

Dealing with a Winding-Up Petition and seeking an injunction can be daunting. Our team of insolvency experts has years of experience in dealing with such matters. We provide tailored advice and assistance, ensuring that your application to the court is presented with the strongest possible case.

If your company is facing the threat of a Winding-Up Petition, don’t hesitate to reach out to us now at info@i10.303.myftpupload.com.