Winding Up Petitions
Winding up petitions are most commonly issued by a creditor of a company seeking payment of a debt due. This could include banks, HMRC or any trade suppliers.
Once a petition has been presented to the court any payments you make could potentially be “clawed back” should a winding up order be made and the company enter liquidation. To proceed in the safest way, you may want to make an application to the court for a validation order, which will give you permission to make the payments you need to (such as to pay staff or essential suppliers etc).
The fact that a petition has been issued against you will then be advertised in the London Gazette, which is a publication in which formal notices are placed, which include notices of the presentation of winding up petitions.
Once the advertisement is placed, it is extremely likely that your bank will become aware of the petition and freeze the company bank accounts, which can have a devastating impact on the day to day running of your business and potentially even lead to further demands for payment from other creditors, who may then support the existing petition.
If the debt claimed is disputed, under £750 or if you would like to prevent the petition from being advertised, we can assist you either obtaining an undertaking from the petitioning creditor that (1) the petition will be withdrawn and/or (2) an advertisement will not be placed in order to give the parties breathing space in order to resolve the matter. If the petitioning creditor does not provide that undertaking, then it may be necessary to seek an injunction to restrain the advertisement and then seek a hearing to have the winding up petition struck out by the courts.