Insolvency Defence Solicitors
Winding Up Petitions
We defend winding up petitions presented against a company with creditors threatening to wind up the company. We quickly establish as to whether there is a genuine dispute and good grounds to defend the claim, which should result in the petition being dismissed 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.
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 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 banks also call in overdrafts as a result, damaging a company’s financial position even further.
We can 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 also obtain an injunction in the High Court where the petitioning creditor refuses to refrain from presenting or advertising the winding up petition.
Defending Winding Up Petitions
We negotiate debts with creditors, including time to pay arrangements.
A winding up petition is a very serious matter and can lead to your company being placed into liquidation.
Effect of a Winding Up Petition on a Company
The directors are unable to sell 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 these transactions 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 have security over them.