Creditors who have exhausted all avenues to recover owed monies can petition for your company to be placed in to compulsory liquidation. Cowgill Holloway Business Recovery can provide urgent advice to directors who have been served with a petition and are facing the threat of liquidation.
If you have received a winding-up petition on behalf of a disgruntled creditor, your company has seven days to respond or The Court will soon issue a winding up order which is, effectively, an order to shut down your company and ‘liquidate’ the company assets. Once a winding up petition is made the affairs of the company are dealt with by the local Official Receiver’s office who may call shareholders’ and creditors’ meetings at which a Liquidator other than the Official Receiver may be appointed.
If we are appointed as Liquidator, our primary function is to collect in and realise the company’s assets, and to distribute the proceeds to the company’s creditors and, if there is a surplus, to the persons entitled to it.
We also bring legal proceedings in the name of the company, if necessary we carry on the business of the company and pay off debts, working alongside the Official Receiver who investigates the company’s affairs.
At the earliest possible stage in the compulsory liquidation process, it is highly recommended that you speak with a licensed insolvency practitioner for advice. A compulsory liquidation may not be the best or only option available to you.