What happens if a creditor threatens to issue a petition to wind up a company?
This is a serious matter. Once a petition has been filed at court and served at the company’s registered office, the petition is advertised in the London Gazette. The banks and lenders review the London Gazette and will freeze the company’s bank account once the petition is advertised. This means that ongoing trading is impossible. Any dealings with company’s assets between the date of the petition and date of a winding up order are void unless sanctioned by the court. Do not ignore a creditor who threatens to wind up a company. Make arrangements to pay the debt or if the debt is disputed explain why. If these two options are not available seek advice as to your company’s position.
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