A Winding-Up Petition is the instrument used by a creditor to begin Insolvency proceedings where the party that owes money is a company. It effectively asks the court to liquidate the company due to insolvency and, as such, is the most serious action that can be taken against a company.
Whether you are presenting or defending a Winding-Up Petition there are specific requirements that must be met, including that the total debt is £750 or more and has not been paid for 21 days. It is a delicate process that requires swift action, particularly on behalf of a company that is presented with a Winding-Up Petition, which will have just 10 days to prevent the winding-up being advertised. The impact of a Winding-Up Petition will be to effectively stop a business from trading and if the petition has been advertised it can do serious reputational damage.
At Mercantile Barristers, we have extensive experience negotiating settlements in the wake of a Winding-Up Petition acting on behalf of companies, as well as creditors. Our barristers are also able to continue to work towards a best-case resolution even where a settlement cannot be reached, including obtaining injunctions to preserve the status quo of a company and obtaining the Validation Orders that may be required for company directors to access funds where appropriate.