My worry

[Fred Elliot]

OK

I have said all along that no business will be wound up whilst a viable rescue package, to the benefit of the creditors.

BUT there is a definate road that a WUP must go through before it comes to court ;

Day 1 :  WUP issued on the registered office

Day 7 :  WUP advertised in the London Gazette

Day 8 :  Company's trading ceases, as its assets and bank account are frozen.

Obviously I am fully confident that the club will not be wound up, however I do worry about how we continue to trade between Day 8 and the Winding up hearing, and the possible view of the FL

This is not meant to be a "doom and gloom" post, just a genuine concern I have if a WUP is served

[Sippo]

Whats WUP? Winding-Up ......

[Ardiles]

Petition

[Fred Elliot]

Winding Up Petition

[TalkTalk]

Petition.

To the Court.

[Sippo]

Ta muchly. Not the sharpest knife in the draw you see...

[TalkTalk]

I don't think you are right there Fred. I was revisiting this last night.

The company's assets/shares etc are frozen and the employees are dismissed ONLY if the Court decides on liquidation. If it does, then that's it - game up, end of story. The club will be liquidated. That's not to say that the liquidator can't keep the company running (if he thinks it will produce a better return in the short term). Sure, somebody can come along and buy the assets and so on but ultimately that action means that the it will cease to exist at some point in the near future.

I think the hope is rather that any winding up petition is adjourned in the light of other offers to pay the CVA/buy the assets etc.

[redbullzeye]

Presuming June 30th goes by without any change to the situation, would I be correct in thinking one of the creditors would have to ask for a winding up petition?  It wouldn't just automatically happen

[TalkTalk]

Presuming June 30th goes by without any change to the situation, would I be correct in thinking one of the creditors would have to ask for a winding up petition?  It wouldn't just automatically happen

Indeed. A creditor has to petition the Court.

[Sippo]

This is all sooooo confusing. My head hurts.

I just want whats best for the club. I want a club to support....

[jayohaitchenn]

Presuming June 30th goes by without any change to the situation, would I be correct in thinking one of the creditors would have to ask for a winding up petition?  It wouldn't just automatically happen

Indeed. A creditor has to petition the Court.

I think that is pretty much garanteed though.

[Fred Elliot]

I don't think you are right there Fred. I was revisiting this last night.

The company's assets/shares etc are frozen and the employees are dismissed ONLY if the Court decides on liquidation. If it does, then that's it - game up, end of story. The club will be liquidated. That's not to say that the liquidator can't keep the company running (if he thinks it will produce a better return in the short term). Sure, somebody can come along and buy the assets and so on but ultimately that action means that the it will cease to exist at some point in the near future.

I think the hope is rather that any winding up petition is adjourned in the light of other offers to pay the CVA/buy the assets etc.

Sorry Talk Talk I beg to differ

I was talking our our legal bods yesterday (we have instigated many WUP's on debtors and they inform me that bankers watch the LG daily and then do round robin e mails.

Accounts then get frozen the following day

[TalkTalk]

Sorry Talk Talk I beg to differ

I was talking our our legal bods yesterday (we have instigated many WUP's on debtors and they inform me that bankers watch the LG daily and then do round robin e mails.

Accounts then get frozen the following day

Do your company ever actually succeed with any of them Fred?  

Have a look at http://www.insolvency.gov.uk/guidanceleaflets/dealingwithdebt/howtowindupacompany.htm

A company does not cease trading or get frozen just because it has had a winding up petition served on it, no matter how many days before the court hearing that is. It is only when the court turns it into a winding up order and it passes into liquidation.

If you think about it, if somebody petitioned about your company on incorrect/false grounds and the court threw it out, it would be manifestly wrong if you had been prevented from trading, wouldn't it?

[Fred Elliot]

Have just spoken to them again, and for a company to be even issued with a WUP depicts that, even put conservatively, trading is perilous.

The banks have the right to freeze accounts, and do so to protect not only their own position, but in alignment with guidelines laid down by the FSA, to protect other would be creditors from dishonored payments etc.

This is not legislative, but best practice in line with the FSA.

However, I take where you are coming from, and as we do not operate any form of overdraft facility or credit lines then this may not be appropriate in our case

[TalkTalk]

Have just spoken to them again, and for a company to be even issued with a WUP depicts that, even put conservatively, trading is perilous.

 

As in when the Revenue issued one against STFC for non-payment of VAT you mean...