National League side Southend United Football Club‘s bank account restrictions, imposed due to the HMRC winding-up petition presented for unpaid taxes on 3 April 2023, were lifted by the court via an order to validate certain payments that the court felt were in line with the interests of all the creditors of the club. However it has been reported that not all those validation order payments have in fact been made.
Once a winding-up petition is presented and advertised, bank accounts are frozen and Company asset disposals are void (s127 Insolvency Act 1986) unless validated by Court order. An Insolvency Judge however can make a general or specific Validation Order to permit the Company to continue to trade, which is what happened here.
Need a second opinion on your insolvency litigation? Our specialist solicitors & barristers can help by assessing your case prospects and whether a winding-up petition is the right tool. We have highly experienced dual-qualified lawyers, so if our view is your case has limited merit or high risk we can advise you of the best strategy in our first meeting. Give us a call on 02071830529 for expert winding-up law advice.
Southend United’s History of Winding-Up Petitions
Southend United as a business has been fraught with financial difficulties, and the club faces mounting debts and financial constraints. These challenges have taken a toll on the team’s ability to operate smoothly and fulfil its financial obligations.
Winding-up petitions pose a major threat to the club’s very existence because they raise the possibility of compulsory court-ordered liquidation and the potential dissolution of the club.
Southend United Football Club’s financial struggles have made it vulnerable to legal action that could yet still result in its compulsory liquidation. Southend United Football Club Limited has an extraordinary record of encountering insolvency-related legal actions. Over the course of the past decade, the club has been faced with a total of 30 winding-up petitions, along with 2 applications for administration and 1 foreign winding-up case. Presently, there is an ongoing petition initiated by HMRC, identified as case number CR-2023-001756. It is concerning to note that Southend United is representing itself as a litigant in person in this case, which is highly unwise. Engaging legal representatives is crucial to effectively oppose and navigate the complexities associated with court proceedings and the petition process.
Winding-Up Petitions: Our Expertise
Winding-up petitions are a legal mechanism used to initiate the compulsory liquidation of a company. When a creditor believes that a company is unable to pay its debts, they can file a winding-up petition with the court, seeking to force the company into liquidation. At our firm, we have extensive experience and expertise in handling winding-up petitions, both in assisting clients with issuing petitions and defending against them.
How We Help Clients Issue Winding-Up Petitions
Issuing a winding-up petition requires careful consideration and a thorough understanding of the legal process. We provide comprehensive assistance to clients who wish to issue a winding-up petition against a debtor. Our experienced team of lawyers will assess the financial circumstances, review relevant documentation, and guide clients through the necessary steps to ensure a well-founded petition. We strive to protect our clients’ interests and help them achieve the desired outcome in their pursuit of outstanding debts.
Need Help Opposing a Winding Up Petition?
Our specialist winding-up petition lawyers are experts in defending winding-up petitions. We can advise you as to the specific merits and demerits of your case and can assist you in opposing winding up petitions and negotiating with creditors. If your company has been issued a winding-up petition or statutory demand, you may be able to challenge that petition and should seek legal advice. Companies are entitled to appear at the petition hearing by way of a Director to oppose the making of a winding-up order however it is usual to instruct solicitors and barristers to appear on their behalf at the hearing.
To oppose a winding-up petition, a Company will usually also need to file a witness statement in opposition with the Court within 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). A copy of that witness statement will need to be provided to the petitioning creditor at least five business days before the hearing. We are experts in successfully dealing with winding-up petition cases.
Why Choose Our Firm for Winding-Up Petitions
Expertise: Our legal team has extensive experience in handling winding-up petitions, enabling us to provide effective advice and representation.
- Tailored Approach: We understand that each client’s situation is unique. We provide personalised guidance and strategies tailored to your specific circumstances.
- Proactive Defence: We take a proactive approach to defending against winding-up petitions, ensuring that all legal avenues are explored and leveraged in your favor.
- Results-Oriented: Our ultimate goal is to achieve the best possible outcome for our clients, whether it involves successfully issuing a petition or effectively opposing one.
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.
First-class Second Opinions ✔
Discounted fixed fee advice.
Need a second opinion on your insolvency litigation? Our specialist solicitors & barristers can help by assessing your case prospects and whether a winding-up petition is the right tool. We have dual-qualified lawyers, so if our view is your case has limited merit or high risk we warn you in our first meeting.
Some firms offer free meetings with unqualified or junior lawyers but only after you’ve spent significant funds do you then get advice from a senior partner and/or barrister possibly suggesting that the case shouldn’t be pursued. We believe it is better to give accurate advice from experienced counsel from the outset.
We do things differently from all other law firms in England & Wales. We offer you partner and counsel-led advice in our first meeting, for a heavily discounted fixed fee. That way our best solicitors and barristers can review your litigation case and give you the correct advice at the outset, when it matters the most.
Legal advice is just one aspect of getting a solution. The most important thing is what you do with the legal knowledge about your case, how you present it to the other side and how you negotiate your way to the optimal legal settlement. Our lawyers are masters of strategically securing optimal financial settlement, often via winding-up petitions where carefully considered and advised as appropriate.
Want your case assessed or a second legal opinion? Call ☎ 02071830529 or message our London litigators by clicking the Check My Case button below: