Once a winding up petition has been submitted to the court and served on the debtor company, the next crucial part of the process is for the petitioner or their solicitor to advertise the petition. If the petition is not advertised at the right time or in the right way, the winding up petition cannot be heard.
After the creditor has served a copy of the winding up petition on the debtor company, they must wait a minimum of seven days before advertising notice of the petition in The Gazette. The Gazette is an official public record of the British government. Although there are regional variations of The Gazette, every petition advertised in England and Wales will appear in The London Gazette.
The petition notice must be advertised at least seven days before the scheduled petition hearing. Once it is advertised, the petition will be in the public domain and the banks, which check The Gazette on a daily basis, could freeze the company’s bank accounts. Creditors that see the petition notice may also attach themselves to the petition in respect of any unpaid debts they are due.
What details does the notice include?
The notice includes details such as the name and registered address of the company in question and where and when the petition will be heard. It also invites those who intend to appear at the hearing to support or oppose the petition to give notice of their intention to do so.
Once the petition has been advertised, the next stage of the process is for the winding up petition hearing to be held. On hearing the petition, the court may decide to make a winding up order to force the company into liquidation. At this point, the winding up order will also need to be advertised in The Gazette.
If you’ve received a winding up petition or are being threatened with one, you should seek advice as soon as possible. At AABRS, we have significant experience with dealing with insolvent companies and can advise you about the possible steps that you can take. Call 0208 444 2000 for an initial telephone discussion.