Can a Wind Up Application be Revoked?
A winding up notice is usually issued by a creditor who wants to enforce their unpaid debt by having the company wound up and a liquidator appointed. Once a winding up notice has been issued it is very difficult to have one set aside. If a winding up notice has been issued and the company wants to oppose the application, the company will firstly need to pay the petitioning creditor’s debt (prior to the court date) and secondly the company will need to prove to the court that the company is solvent and can pay other creditors.
Opposing a wind-up notice
As mentioned above, if the company wishes to oppose the winding up notice, the court will most likely need the company to put on evidence (usually in the form as an expert accounting report) demonstrating that the company is solvent and can pay all creditors as and when the debts fall due. If the court is satisfied with this evidence and the company has paid the petitioning creditor’s debt in full, then the court may dismiss the winding up application.
How to avoid being issued with a windup notice
Before receiving a wind up application the company should have received a creditors statutory demand. If you receive a creditors statutory demand, the company will have 21 days to either pay the debt or apply to court to have it set aside. If the company ignores the demand and does not file an application in court within the 21 day period, then the debt will be assumed to be owing. The creditor will rely upon this default in its winding up application.
What happens if I do nothing?
If you receive a wind up application and you don’t do anything, the court will assume that the company is insolvent and will appoint a liquidator at that hearing. The petitioning creditor usually nominates a liquidator of their choosing. After you receive a wind up application it is too late to appoint a liquidator of your choosing.
Seek professional advice
If your company is heading towards voluntary or involuntary company liquidation, you should seek professional advice immediately. Contact the 24/7 CRS Insolvency Services hotline on 1800 210 073 to receive free and impartial company liquidation advice today.