Southend United Winding-up Petition Adjourned, Again

A winding-up petition presented against Southend United has been adjourned by the Companies Court for a third time, until 16 September 2020. The latest winding-up petition is one of a number of petitions that have been presented to the club by HMRC in recent seasons amid financial trouble.

The rules surrounding insolvency are technical and it is unlikely that a someone not versed in personal insolvency laws will achieve a successful outcome. Winding up particularly and insolvency in general is a niche practice area – indeed many solicitors in general practice will rarely have experience in this discipline.

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.

Why was Southend United presented with a winding-up petition?

HMRC issued a winding-up petition to the team who owe an unspecified amount of tax to HMRC.

The football club is expected to look to settle the debt through refinancing, with 502 homes planned to be built on Roots Hall when they move to their Fossetts farm site. An agreement to build a new stadium was announced by the club earlier in April 2020.

How can companies oppose a winding-up petition from HMRC?

If your company is concerned about a winding-up petition from HMRC, your company can challenge that petition on the following grounds:

  1. The Company has been unable to pay the debt due to COVID-19 reasons (e.g. the Company has been financially impacted by COVID-19);
  2. The debt alleged in the statutory demand or petition to be owing is genuinely disputed on substantial grounds by your company;
  3. Your company has a genuine right of set-off against the creditor (i.e. HMRC) that exceeds the amount claimed in the statutory demand; or
  4. In certain other limited circumstances (for example such as jurisdiction, company likely to become insolvent, technical or procedural error or delay).

In order to oppose a winding-up petition, you would need to file a witness statement in opposition with the Court no fewer than five business days before the date when the petition will be heard by the Court (rule 7.16 of the Insolvency (England and Wales) Rules 2016). You would also need to provide a copy of that witness statement to the petitioning creditor at least five business days before the hearing.

Your company is entitled to appear at the petition hearing and to oppose the making of a winding-up order. It is usual for companies to instruct solicitors and/or barristers to appear on their behalf at the petition hearing.

If a company chooses not to instruct lawyers, then any director can appear at the hearing on the company’s behalf. However, other agents of the company (such as accountants) are not entitled to appear on the company’s behalf.

How we can help your company

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.

Why should you instruct a specialist insolvency lawyer at the winding up petition hearing?

The rules surrounding insolvency are technical and it is unlikely that a someone not versed in personal insolvency laws will achieve a successful outcome. Winding up particularly and insolvency in general is a niche practice area – indeed many solicitors in general practice will rarely have experience in this discipline.

Do not underestimate the severe consequences that winding up a company entails. It is likely that seeking the advice of a specialist insolvency lawyer will be of far more benefit to you than ignoring impending proceedings or seeking to conduct the litigation yourself as a layman.

Not based in London? We provide nationwide representation

That does not matter, we will represent you no matter where you are based in England or 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.

If we can, we will arrange a conference with a senior member of our winding up petition team. This meeting will take place either in person or using our telephone conference facilities or via Skype if you prefer. Therefore, no matter where you are based in England or Wales we can represent you.

How can we help if your company is going into adminstration?

We add value by our legal services by guiding clients as to how best companies can be rescued and turned around and how debts can be written off or restructured. We can advise on administration or proposals of either Company Voluntary Arrangements (CVAs) (as Travelodge have recently done) or Partnership and Individual Voluntary Arrangements (PVAs or IVAs). To achieve a company rescue you must act quickly; contact us as soon as possible. The more time available to build an alternative business plan, the more successful it is likely to be. If your company can be saved, whether this is achievable through restructuring or writing off debts, the team can help by offering clear, practical and easy to understand advice which deciphers the Insolvency Rules and regime.

Instruct Specialist Insolvency Lawyers

We provide a no cost initial case review to establish whether or not we can help you. We are a specialist City of London law firm made up of Solicitors & Barristers and based in the Middle Temple Inns 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.

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