Winding-Up Petiton - What are the options?

Ok so your company has just been issued with a Winding-Up Petition; it sounds very scary doesn’t it? Especially when you realize that it is going to be heard in front of a Judge at the Royal Courts of Justice in London. How daunting is that? The Royal Courts of Justice! Understandably you may walk around in a daze for a few days, unable to think straight or to come up with an action plan. Just as it does start to settle in and you realize you need to take action you will begin to be bombarded with letters from companies offering their services; how do you choose who is the best?


You may have business associates that you feel you can turn to, you may even discuss matters with family and friends but remember that this is your livelihood and your future solely depends on your next move. Because it’s such an important matter you may think that you must see your Solicitor?


Before you do anything, just pause and try to think logically.


Without slating any other profession Solicitors are renowned for extortionate fees and not all Solicitors specialize in corporate insolvency. Does this really sound like your best option? I am sure you will agree it doesn’t. So your next option would be to go to an Insolvency Practitioner, now these are renowned for being the grim reapers of business; the “ambulance chasers”. Again I am sure you have heard about the exorbitant fees they can charge. So……where does this leave you?


You need a common sense approach, a company that can get great results while still being cost-effective; Tenable Solutions Limited can help from the minute you receive your petition. We speak in terms that you will understand and not bamboozle you with legal jargon. Our fee structure is simple to understand and we have no hidden fees. All our rescue packages are tailor-made to your requirements so you can have as little assistance or as much assistance as you need. Our record for defending Winding-Up Petition is exemplary, even if the hearing as already been adjourned.


You may be reading this and thinking that you don’t want to save your business; that you want to shut the doors as this has been the final straw. That’s all well and good BUT there are things you need to consider:-


• Have you been compliant with HMRC?
• Have you taken dividends when the company hasn’t taken a profit?
• Have you got a Directors Loan (you would lose this)?
• Have you signed Personal Guarantees with any creditor?


If you have answered “YES” to any of the above then you seriously need to get urgent advice before making any decision as you could end up losing everything!


We at Tenable Solutions Limited understand the effects a Winding-Up Petition can have both mentally and physically on the Directors, our first step is to have an informal chat about your options. Talking your problems, your hopes and your fears through with an expert can make the situation seem much brighter and you may find that you can focus on the future.


If you would like an informal, free, no obligation chat with one of our experts then do not hesitate to contact us on freephone 0800 4 96 95 94 or EMAIL

JARGON BUSTING.......WINDING-UP PETITION

In effect any creditor owed over £750 can apply to the court for a Winding-Up Petition, in simple terms the petitioning creditor has had enough of false promises, broken payment agreements and bounced cheques and wishes to stop the company trading (compulsory liquidation). It is a costly action to pursue but very effective, especially if the company has valuable assets. Upon receipt of the petition the court will review the evidence supplied and decide whether the petitioning creditor has taken reasonable steps to collect the debt. In some cases the debtor may believe that a Winding-Up Petition has been issued unfairly and an “abuse of the court process”, legal advice must be sought at this point but it may be possible to have the petition rescinded if it is deemed by the court as an abuse. This would stop any action such as banks accounts being frozen or the petition being advertised. If the court does not believe it to be an abuse of the system then it will still stand and be advertised as normal.

The petitioning creditor has to allow seven full days after serving the petition on the registered office of the debtor company before it can be advertised, also prior to the High Court Hearing the petition must have been advertised in the London Gazette (Edinburgh Gazette for Scottish registered companies) and is usually done so seven days before.

Once the petition is advertised the bank will find out and will usually freeze the company’s bank account. This prevents any illegal actions of the Directors.

There are actions that can be taken to unfreeze the bank account but professional advice should always be sought on obtaining a “validation order”, of course this action is also costly as it incurs legal fees.

If the debtor does not pay the winding-Up Petition or if the petitioning creditor does not agree to any offers it generally leads to a winding-up order being issued and the Official Receiver or court appointed liquidator taking over the company.

At this stage the Directors will personally be investigated, this is to ensure that they did not trade whilst insolvent and acted properly according to their Director duties.

If the company is “wound up”, the Directors will be held personally liable for any debts signed for with a Personal Guarantee (PG).

0800 4 96 95 94 or EMAIL

WINDING-UP PETITIONS! IT ISN'T THE END!

Today i have been advising someone who had recieved a Winding-Up Petition from the court. Obviously when they recieved it they were panic stricken; problems had been building up over the last 6 months and they had been burying their heads in the sands and trying to keep their heads aflot by "robbing Peter to pay Paul" - only trouble was "Peter" had run out of money!

A creditor had finally had enough and decided to issue a Winding-Up Petition.

What people don't realise is that a Winding-Up Petition doesn't have to mean it is the end of your business - you just need to get the right advice!

If you would like a friendly, informal chat about any problems your business may be facing then call me on FREEPHONE 0800 4 96 95 94 or EMAIL