Abacus’ insolvency solicitors can assist you defending a winding-up petition issued against your business.
- Preventing Advertisement of the Petition
Once a Winding Up Petition is presented to the Court a creditor has a duty to advertise the Petition in the London Gazette. This advertisement can take place anytime between 7 days from you being served with the Petition until 7 days before the hearing.
Once the Petition is advertised the bank accounts of the company will be frozen. This is likely to have a detrimental effect on the company continuing to trade and immediate steps need to be taken to prevent the creditor from taking this action.
You are able to prevent the advertisement of the Petition by applying to Court for an injunction preventing the Petitioning Creditor from advertising the same.
We can act on your behalf in negotiating an agreement not to advertise and if necessary applying to Court for a Court Order to prevent the advertisement.
- Defending a Winding Up Petition
Insolvency proceedings are a daunting prospect and can be devastating to a company’s business; therefore creditors will often issue a Winding Up Petition when it may not be correct or appropriate to do so in the hope it will force the company to pay a debt.
A Court Order winding up the company effectively begins the liquidation of the company and the realisation of all the company’s assets.
Due to the severe consequences of issuing a Winding Up Petition creditors need to ensure that they have complied with the strict rules of the Insolvency Act 1986. Failure to comply with these rules could cause the petition to be dismissed.
The insolvency procedure is to be utilised for undisputed debts where the company simply cannot pay and are therefore insolvent. This procedure should not be used for a debt which is subject to a dispute. If you have a real and substantial dispute to the debt which forms the basis of the petition you may be able to defend the same and have the petition dismissed.
In these circumstances, Abacus Solicitors can defend a Petition on your behalf and look to have the dispute resolved and/or the petition dismissed.