Insolvency Winding Up
Petitions

Winding up petitions

We can help creditors recover amounts owed by companies and defend claims made against companies and defend winding up petitions. We can defend a winding up petition presented against your company if a creditor is threatening to wind up the company. We see whether there is a genuine dispute and a good ground to defend the claim, which should result in the petition being dismissed and with costs. The Court normally expects a creditor to obtain a judgment against a company in the first instance before instituting winding up proceedings. It is therefore tactically important to see whether the company has a genuine and reasonable defence before embarking down this road. We can also negotiate with your creditors, and try and enter into time to pay arrangements.A winding up petition is a very serious matter which can lead to your company being placed into liquidation and therefore it is very important you obtain expert insolvency advice asap.

Advertisement of a winding up petition

The advertisement of a winding up petition can damage your company. A company only has 10 days from the date of the winding up petition to prevent the winding up being advertised. We can assist in delaying the advertisement of the petition to allow you time to enter into negotiations with creditors, as banks as part of their ordinary processes trawl through the legal press and freeze company’s bank accounts upon discovering winding up petitions. The bank can also call in loans and overdrafts as a result, damaging your company’s financial position even further.

We assist in obtaining a Validation order from the Court to allow directors to access funds or dispose of the company’s assets in the event a company winding up petition is presented.

We can obtain an injunction in the High Court where the petitioning creditor refuses to refrain from presenting or advertising the winding up petition.

Effect of a winding up petition on a company

Directors cannot sell, charge or dispose of company assets once a winding up petition has been presented to the Court. In the event any assets are transferred or disposed of, the Court can subsequently set these transactions or transfers aside. The ultimate ownership of the asset is not always clear. We advise directors and shareholders whether they can retain any assets which may belong to them personally. We also establish whether third parties have rights over company assets as they may have paid or contributed towards them or have security over them.

Please call or email us for a free initial confidential discussion

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