What is a winding up petition
If a company owes money and has refused or neglected to pay the debt, then a creditor can apply to wind it up by presenting a petition to court for that purpose. A winding-up petition is usually presented by a creditor on the grounds that the company cannot pay its debts and this has to be proved to the court.
So how is it proved that the company cannot pay its debts?
The court will regard a company as being unable to pay its debts if any of the following occurs:
A creditor obtains judgement against the company and execution is unsatisfied; in other words the sheriff or bailiff is unable to seize enough assets to clear the debt.
It is proved to the court that the company cannot pay its debts when they fall due; for example, no payment is made in response to a letter of demand.
It is proved to the court that the company's total debts exceed its total assets.
To ensure that all legal requirements are met a solicitors usually issues a petition. The winding up process is not simply a matter of completing a petition and presenting it to the court. A court hearing can result in costs being awarded against either party. For example, costs may be awarded against the creditor if the court believes it has used the winding up procedure inappropriately where the company has good reason for saying it does not owe the money.
Advertising the petition
The creditor must advertise that a petition has been issued no sooner than 7 business days after the petition was served and no later than 7 business days before the winding up hearing.
What happens at the hearing?
The procedure for the hearing is likely to differ depending on the court in which you apply for a winding-up order. The court will look at all the facts and will decide on whether a winding up order is to be granted.
adminWhat happens after the winding-up order is made?/admin
View the latest companies with winding-up petitions lodged against them
The company provides a streamlined, tech-supported process for homeowners and residential landlords to acquire new home services, including heating and other infrastructure. The business offers products from leading brands through an automated stock...
The company designs, manufactures, installs and maintains biomass heating systems for industrial premises throughout the UK. The business offers products with varying heating capabilities and capacities, ensuring that it can meet clients’ specificati...
A leading physiotherapy clinic in Loughborough, celebrating over 40 years of service. Known for its expertise in sports injuries and TMJ/migraine treatment.
LEASEHOLD
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.