Receiving a winding up petition

A winding up petition represents the most serious threat to the future of your company and if nothing is done, it will result in the company being closed.  

If your company receives a petition, you as a director, need to act fast!

Following a petition being lodged at court, a notice will be placed in The Gazette which is monitored by creditors who will be alerted to act. 

The bank will freeze your company’s accounts which will stop trade. This can happen as soon as seven days after it the petition has been served.

If you cannot repay the petition debt, the good news is that if the core business is viable, there are options to prevent your company from going through this process if you act fast:

Dispute the debt

If there is a legitimate dispute and your company can provide clear evidence to this effect, then the debt can be disputed at court.

Restructure the business

You can apply for administration through the courts if you can demonstrate that the business of the company can be rescued, or it provides a better outcome for creditors than winding up.

Implement a Company Voluntary Arrangement 

Negotiate a formal agreement with creditors and create an affordable repayment plan for your company’s debts.

Creditors’ Voluntary Liquidation

With the permission of the petitioning creditor, you could look to go through a voluntary liquidation process allowing you to nominate your own insolvency practitioner.

Acting quickly and seeking the help of a licensed insolvency practitioner will ensure you understand all the company’s options and provide you with the best chance to save your business.

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