Farleys’ specialist insolvency team recently acted for a debtor company in a case before the High Court in Leeds. The team successfully ensured the winding-up petition was not progressed due to technical defects within it.
How Farleys Were Able to Help
Ahead of the hearing, Farleys spotted that the petitioning creditor had failed to provide the debtor with the correct notice under Schedule 10 of the Corporate Insolvency and Governance Act 2020 (“CIGA”), which is a mandatory requirement under the new legislation. We, therefore, instructed Louise Bowmaker of Counsel to seek dismissal of the petition and those submissions were successful. Our client was also awarded its costs.
Solicitor Ella Holden, of Farleys’ insolvency team, commented,
“The ruling shows the strict line the Courts will take in ensuring petitioners comply with the procedural requirements of CIGA. It is a lesson to both petitioners and debtors alike that specialist advice should be taken to ensure notices and petitions are drafted correctly.
“I expect we will see other similar cases reported across the country in the near future as winding-up petitions become more common now that restrictions on them have been lifted. The requirements of CIGA are strict for a reason; they are there to protect debtor companies and to make sure they are given the correct information when responding to a winding-up petition.”
Contact an Insolvency Specialist Today
Farleys’ insolvency team are experienced in advising businesses throughout the insolvency process to find solution which works for them and settling disputes with creditors, investors, and third parties.
If you have received a winding-up petition or require any advice on issuing a winding-up petition against a debtor that owes you money, please contact Farleys’ specialist insolvency team on 0845 287 0939 or get in touch by email and a member of the team will get back to you.