Injunction to Prevent Advertisement
Injunction against advertisement of winding up petition:
Public advertisement of your company being subject to a winding-up petition can have a devastating consequences for your company, its directors, staff morale not to mention it is reputation.
Once advertised, your bank facilities will be automatically frozen which will have an obvious impact on your company’s ability to continue trading. If you believe that you have substantial grounds to oppose a Winding Up Petition then it is vitally important that you take immediate steps to avoid the advertisement of the Winding Up Petition to protect not only your finances but the internal and external reputation of your company.
It should be noted that even once a petition has been presented to the court, your company will still have the opportunity to apply to restrain the advertising of said petition, which would be likely to be shown in the London or Scottish Gazette. As well as being able to apply to restrain presentation of a Winding Up Petition, a Petition Debtor can where it is able to present to the prima facie evidence that petition amounts to an abuse of process or is otherwise bound to fail, seek an injunction to restrain the advertisement of a Winding Up Petition.
Our insolvency lawyers can be on hand to help expertly draft your application and collate the requisite evidence to present to the court, and can help you determine your most effective standpoint in challenging the public advertisement of the Winding Up Petition.
You will need demonstrate by way of a witness statement by an officer of your company which we can assist you in drafting the following:
- The grounds upon which the debt is disputed.
- Any evidence in the form of correspondence between the parties
- Financial summary of the company, including the balance sheets, forecasts etc.
Common grounds on which a debt can be disputed and an injunction granted are:
- The petition is an abuse of process
- The petition is bound to fail
- You company has a genuine counterclaim or cross claim that would reduce the debt to less than £750
- If the petition is unfair on the debtor
- There is an ulterior motive behind the petition other than for the purposes of genuinely seeking winding up
Our team of insolvency experts have years of experience dealing with winding-up petitions and injunction applications and are able to provide tailored advice and assistance in presenting your application to the court.