How to get an Injunction to Restrain a Winding Up Petition Advertisement

While it isn’t easy obtaining a formal injunction against a creditor whom you know is on the brink of serving you a Winding up Petition, it is possible. You will need what is legally referred to as ‘prima facie evidence’, which you can present to the High Court.

This article will explain to you how that process might unfold but we should point out, this isn’t something you’ll want to attempt alone.

Our recommendation would be to call us for advice, or consult your qualified legal advisor on the matter since these matters can be complicated. If you’re reading this article it’s likely you already recognise the severity of a WUP, should it be issued. 

Can I Obtain an Injunction to prevent a Winding up Petition

Classic Grounds to get an Injunction for a Winding up Petition

  • If the petition is an abuse of process or otherwise bound to fail
  • If the company has a genuine and serious cross-claim or right of set-off for an amount equal to or exceeding the petition debt or that would reduce the debt to less than £750
  • If the petition is bound to fail as a matter of fact or as a matter of law
  • If the petition is unfair to the company
  • If the petition has been presented by the creditor other than for the purpose of getting the company wound up
  • If the creditor has another remedy, which is more suitable but they don’t intend to pursue.

If the company is unsuccessful in getting an injunction on these grounds, the winding up petition is likely to proceed and result in Court order to close the business. If the company obtains the injunction, the creditor who issued the petition becomes liable for the legal costs attached to obtaining the injunction.

Restraining an Advertisement in the London Gazette

Once the petition is advertised, your bank accounts will be automatically frozen which will severely jeopardise the ability of your company to continue trading. One of the main reasons companies apply for an injunction is to prevent this from happening because it stands to reason that no company can continue trading without access to its bank accounts. 

How to Apply for the Injunction?

The application for an injunction should be accompanied by a witness statement from a company director or other employee, setting out the grounds on which the debt is disputed and showing evidence, such as letters, emails and other documents produced at the time between the creditor and the indebted company. The supporting witness statement must also contain a summary of the financial affairs of the company and include the latest balance sheet, profit and loss accounts and forecast.

Once the application for an injunction has been made, the company and the creditor will get notice of the date and time of the hearing.

Act Now to stop the Winding up Petition from Becoming a Winding up Order

If you have been threatened with or served a winding up petition, please call 08000 746 757 or email [email protected] for free and confidential advice from one of our professional advisers.

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