My Company Has Received a Winding Up Petition, My Company Has Received a Winding Up Petition, HBG Advisory

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My Company Has Received a Winding Up Petition

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If you need help understanding the best way forward for your company, we can provide confidential free initial advice. You can book a free virtual meeting or call us on 0800 612 5448.

My Company Has Received a Winding Up Petition

A creditor of your company may ask the Court to issue a winding-up petition for a debt they have not received payment for. The Creditor issues the Statutory Demand, awaiting them 21 days before, then asking a Court to issue a winding-up petition for failing to pay.

Court costs remain the responsibility of the Creditor. Therefore, creditors usually only issue petitions as a last resort. They also act as a good leverage to prompt debtors to pay quickly. Costs of the winding-up order (approximately £1,800) usually are attached to the debtor’s sum owed by the creditor.

A winding-up petition is the most drastic step that a creditor can take on a limited company that owes money and incapable of paying. 

What happens next?

Once served with a Statutory Demand, your company has 21 days to either dispute the demand and have it set aside, or agree with the creditor overpayment. REMEMBER: After 21 days, creditors can ask the Court to issue a winding-up petition.

The winding-up petition advises on the form the time, date and location of the hearing. You have ten days to pay the outstanding debt or arrange an acceptable repayment plan. So ensure either is actioned before the petition is advertised in the London Gazette.

The London Gazette is published daily, in print and online. It is fully accessible to the public. Therefore, your company’s bank will freeze your company’s accounts pending the outcome. Beware also that your companies phone service risks being disconnected once the London Gazette advertisement is out in the public domain. There is also the possibility other company creditors will 

  • Remove credit facilities, 
  • make their requests for payment and 
  • possibly join the petitioning Creditor.

The petitioning creditor may withdraw the petition if paid in full. Suppose the debtor offers an acceptable repayment plan. Note though, If the Creditor has had to pay to issue a winding-up petition, the cost of application is added to your debt.

What action can I take?

Assuming you receive a winding-up petition against your company? Then it is imperative you seek professional support NOW! An Insolvency Practitioner may support you through the process by attending the Court, and then maintain control for you with our licensed Insolvency Practitioners.

You may consider appointing a solicitor to attend Court to secure an adjournment, so you may have time to find the funds to pay the demand or commence dissolution of your company by:

Ensure you pay attention to the date, time and location of the hearing described in the petition.

Winding-up orders and Coronavirus COVID19 Pandemic?

The Corporate Insolvency and Governance Act 2020 has introduced temporary measures to support UK businesses and directors affected by the Covid-19 Pandemic that has affected the UK.

If your business has been affected by the pandemic and worried about any issues, please contact us.

How can HBG Advisory help if I’ve received a Statutory Demand?

Having received a Statutory Demand, please contact HBG Advisory urgently and arrange a meeting via an online VIRTUAL meeting safe and private with either of our experienced licensed Insolvency Practitioners, Sandra McAlister and Simon Barriball

We provide free and confidential advice at our first meeting in total confidence.

The team at HBG Advisory can review your company’s financial status while highlighting options. Should the Creditor be acting on their own to display focused techniques for collection, or that the Statutory Demand is a sign of insolvency for the company? Therefore, setting out a business recovery plan is essential for the company to remain. Directors often consider it a rescue process using an Administration. If the company is insolvent, we can actively help protect your assets and ‘ring-fence’ the company before placing it into recovery or a liquidation plan.

How can HBG Advisory help if I’ve received a Winding-Up Petition?

Having received a Winding Up Petition, please call HBG Advisory urgently, as the order is time-critical. 

We put immediate processes into action to protect your company’s assets while ‘ring-fencing’ your company before any further action taken. We will attend the court hearing on your company’s behalf to adjourn the winding-up process. Once agreed, you might appoint our team to commence a creditor’s voluntary liquidation, CVL, rather than a compulsory liquidation. Therefore, no involvement of the Official Receiver.

How can a CVA help my company when receiving a Statutory Demand or Winding Up Petition?

Company Voluntary Arrangements is part of an Insolvency rescue procedure. It is a formal agreement between a company and its creditors, which has proven viability moving forward and convinced creditors that it can be sustainable and may repay the creditors over time from future trading profits. 

For a CVA to proceed, approval must be sort by your company’s creditors? HBG Advisory supports you to ensure the viability of your company, ensuring sustainability moving forward.

How can a CVL help? My company has received a Statutory Demand or Winding Up Petition?

If your company is no longer viable, CVL is the best option. A CVL offers a process that dissolves the company and distributes its assets once realised amongst the company’s creditors.

The company therefore dissolved in a much more managed way than if you were to allow the winding-up process to go ahead. Directors of companies dissolved by the Court must attend interviews with the Official Receiver or their team, while handing over company books for careful investigation into the company, exposing directors to personal liability and possible further action.

A Creditors Voluntary Liquidator requires the liquidator to investigate the company as part of the statutory requirements and complete a confidential report on the companies actions and directors.

Petition advert now published in the London Gazette.

Nevertheless, having your bank account frozen and your company’s plight now advertised to the world at large. You, as a director, may consider:

  • Opposing the outstanding debt;
  • approach an Insolvency Practitioner to propose a Creditors Voluntary Arrangement;
  • appoint an Administrator to your company;
  • apply to the Court requesting the hearing to be cancelled, or failing that an adjournment?

Having your company’s bank frozen may therefore require you to apply for a Validation Order. The Validation Order, however, offers no support for stopping the winding-up process. 

What options are available to me with a Winding Up Petition pressing.

Every case is different. So we may give you the best option to protect you and your company’s creditors. However, rather than recommend a CVL or CVA, a meeting is essential to ensure you receive all the options available.

Please call HBG Advisory to address your specific situation. We are here to listen and help with free, confidential and prompt advice.

We don’t require your personal or company details to answer initial questions on your current situation:

My Company Has Received a Winding Up Petition, My Company Has Received a Winding Up Petition, HBG Advisory
My Company Has Received a Winding Up Petition, My Company Has Received a Winding Up Petition, HBG Advisory
My Company Has Received a Winding Up Petition, My Company Has Received a Winding Up Petition, HBG Advisory
My Company Has Received a Winding Up Petition, My Company Has Received a Winding Up Petition, HBG Advisory
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