Hellenic Dynamics PLC, a UK-registered medical cannabis cultivator specialising in producing THC-dominant dried cannabis flowers for global markets, recently faced a significant legal setback when the High Court refused its application to rescind a winding-up order. This development follows a series of winding-up petitions (CR-2024-006452) initiated against the company, reflecting ongoing financial distress and creditor disputes.
Despite securing some funding support and exploring various financing options, the company has struggled to meet its debt obligations, leading to multiple legal challenges. The winding-up petition was filed in late-2024 by a creditor, Tomasz Henryk Dulak. The company’s directors maintained that the petitioner was not a legitimate creditor and sought dismissal of the petition, highlighting their efforts to secure a loan to address financial liabilities.
Despite these efforts, the High Court, presided over by ICC Judge Briggs, ruled on July 2, 2025, to refuse the company’s application to rescind the winding-up order. The court’s decision underscored that Hellenic Dynamics had not demonstrated sufficient grounds to overturn the order, even though the company’s former directors invested considerable resources and time in seeking a favorable outcome for stakeholders. The company continues to explore options to preserve value for creditors and shareholders, but the refusal marks a critical juncture in its insolvency proceedings.
This case highlights the complexities of winding-up petitions and the strict requirements for rescinding such orders. If your company is facing similar risks, contact our expert insolvency team on 020 7183 0529 for urgent advice and representation.
How to rescind a Winding-up Order?
If the Court makes a winding-up order against a company, an official receiver is automatically appointed as a liquidator of the company and takes control of the company and its assets and investigates its affairs. Rescinding a winding-up order is a legal process that allows a company to reverse the effects of a winding-up order and continue operating as a going concern. This may occur when the company’s directors or creditors believe that the order was issued in error, or that circumstances have changed since the order was made.
The process involves making a legal application to the court that issued the winding-up order, providing evidence to support the application, and paying any outstanding debts or expenses related to the winding-up. If the court is satisfied that the cancellation is justified, it may rescind the winding-up order and allow the company to resume its operations as if there was no winding-up order.
Factors that affect the Court’s Decision
The Court’s decision to grant the order for cancellation of a winding-up order will be influenced by several factors, including the specific circumstances of the case and the evidence presented to support the application. It is important to note that this jurisdiction is considered exceptional, and the Court will only exercise it in cases where there are compelling reasons to do so. Additionally, simply paying the petition debt after the winding-up order has been made will not usually be enough to justify granting the order for cancellation. Finally, if it is clear that the company is insolvent, it is unlikely that the Court will grant the order for cancellation.
Rescission of the Winding-up Order
Pursuant to section 12.59 of the Insolvency Rules 2016, the company may seek the recession of a winding-up order. The Court has helpfully set out the process of recession in paragraph 9.10 of the Practice Direction:
Who can Apply to Rescind a Winding-up Order?
The ability to apply for the rescission of a winding-up order is granted to three entities: (a) a creditor, (b) a contributory, or (c) the company jointly with a creditor or contributory. It is important to note that applications made by any other party or solely by the company will not be issued by the Court.
Evidence required to support the Application to Rescind a Winding-up Order
In order to support an application for the rescission of a winding-up order, it is necessary to submit a witness statement that outlines all relevant facts that support the application. This statement typically includes evidence of the company’s solvency and financial position, including its assets and liabilities. If an application to extend time is also being made, the evidence should explain the reason for the delay. It is important to note that the original evidence must be filed and copies must be served, along with a copy of the issued application, to the parties who are required to receive notice. Copy evidence is generally not accepted for filing.
Parties that must be served with the Application and Evidence to Rescind a Winding-up Order
The application and evidence for the rescission of a winding-up order must be served to the Official Receiver, as well as to the petitioner and any supporting or opposing creditors. Evidence of service will need to be provided during the hearing in the event that neither the Official Receiver nor the petitioner attends.
Likely Costs Consequences of the Application to Rescind a Winding-up Order
The costs associated with an application for the rescission of a winding-up order will vary depending on the specific circumstances of the case. In general, if the application is unsuccessful, the individual who initiated the application will most likely be required to cover the costs of the Official Receiver and/or the petitioner.
How we can help your company to Rescind a Winding-up Order
As a leading law firm with a track record of success, you can be assured that your matter is in safe hands. Our success rate is a result of the dedication of our lawyers who will diligently review your matter so it has the best possible chance of success from the outset when it matters the most.
Specialist Lawyers for Winding-up Petitions
Engaging a specialist insolvency lawyer is advisable when facing a winding up petition hearing due to the technical nature of insolvency regulations, particularly in the specialised area of winding up. Mistakes made without expert legal guidance can result in costly consequences for the company. Seeking the advice of a specialist insolvency lawyer is crucial to navigate the proceedings and mitigate potential risks.
We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inn of Court adjacent to the Royal Courts of Justice. We are experts in dealing with matters surrounding insolvency in particular issues. Our team have unparalleled experience at serving statutory demands, negotiating with debtors/creditors, setting aside statutory demands and both issuing and defending winding up petitions vigorously at the Royal Courts of Justice (Rolls Building), or the relevant High Court District Registry or County Court with jurisdiction under the Insolvency Rules
London & Nationwide Legal Representation
We represent clients throughout England & Wales. If you contact us through our contact form, by email or by phone, one of our winding up petition team members will contact you by phone to discuss your matter and assess whether we can help you. Our team will be able to arrange a fixed fee conference with a senior member of our winding up petition team.
Experts in HMRC Winding-up Petition Defence
HMRC is the largest issuer of winding up petitions, and the resultant legal and financial difficulties can be overwhelming for businesses. However, our firm has a dedicated tax disputes team that specialises in addressing HMRC-related claims and navigating Time To Pay Arrangements, providing effective support to companies during difficult times.
We firmly believe that a combined approach is key to saving struggling businesses, and our tax dispute team is renowned throughout the country for their exceptional track record in this area. Led by a former HMRC Tax Barrister who also headed the National Tax teams of two of the ‘Big 4’ accountants, our team possesses the expertise and insight required to achieve optimal HMRC tax dispute outcomes for our clients.
If your business is facing HMRC-related challenges or threats of winding up orders, our HMRC Winding-up Petition Defence team is here to help. Contact us today to learn more about our tailored legal solutions and how we can assist in safeguarding your and your company’s interests.