The compulsory winding up of Stunt Acquisitions Limited, directed by socialite James Stunt, highlights the critical need for a credible and immediate legal defence when responding to a creditor’s winding-up petition. Despite claims of significant future assets, the Insolvency and Companies Court found the company “clearly unable to pay its debts” and ordered compulsory liquidation.
Unpaid Business Rates Lead to Liquidation
Stunt Acquisitions Limited faced a winding-up petition issued by Westminster City Council earlier this year over an outstanding £173,000 business rates debt related to a property in Mayfair’s Leconfield House, historically notable as a former MI5 HQ during the Cold War. The debt covered unpaid business rates dating back to 2019, which are statutory charges under the Non-Domestic Rating (Payment Notices and Consequences of Non-Payment) Regulations 1992.
James Stunt, company director and former son-in-law of Formula 1 magnate Bernie Ecclestone, was reappointed earlier in the year but failed to prevent the winding-up order.
Court Proceedings and Judicial Ruling
At the London hearing, representatives for Westminster City Council revealed that an offer to pay the debt with Rolex watches as security was refused. The company’s legal team sought additional time to settle, citing “two potential sources” to settle the debt and substantial assets yet to be realised, including a possible surplus from Mr Stunt’s personal bankruptcy estate declared in 2019.
However, Insolvency and Companies Court Judge Catherine Burton firmly rejected these arguments, concluding that the company had made “inadequate offers of settlement” and was “clearly unable to pay its debts.” The winding-up order was granted accordingly.
Westminster City Council leader Councillor Adam Hug emphasised the importance of business rates in funding public services, stating that trying to avoid payment “has proven to be rather an expensive stunt for those involved.”
Advice for Company Directors
This case underscores crucial points for companies confronting winding-up petitions:
- Credible and Immediate Defences Matter: Courts require strong, factual evidence and legally robust defences rather than speculative claims about future asset realisation. See HMRC guidance on business rates and Insolvency Rules 2016.
- Adequate Settlement Offers Are Essential: A winding-up petition is usually filed by creditors owed £750 or more. Early negotiation with creditors can prevent court action. For detailed creditor rights, refer to advice on debt collection.
- Act Quickly on Petitions: Delays or relying on unproven claims increase insolvency risk. The Section 122 of the Insolvency Act 1986 guides insolvency tests applied by courts.
- Consider Alternatives to Liquidation: Formal insolvency procedures such as a Company Voluntary Arrangement (CVA) or Administration can offer legally protected solutions to restructure and avoid liquidation
Check Your Insolvency Case ✔
We analyse your winding-up petition prospects. We deliver strategic legal advice at your first meeting. We get optimal legal results. Want a first or second opinion on your case? Click below or call our lawyers in London on ☎ 02071830529
WARNING – OBTAIN SPECIFIC GUIDANCE & ADVICE
The information on this website is not legal advice; you should always obtain specific advice on the circumstances of your case. Our Winding-up Petition Solicitors & Barristers provide specialist legal advice based on decades of expertise. Click here or call +442071830529 to get in touch. For regulatory reasons we do not take on low value cases nor provide free legal advice, information or guidance and our team cannot answer questions from non-clients.
How Expert Solicitors Can Protect Your Company From Winding-Up Petitions
High-profile status provides no immunity under insolvency law. Facing a winding-up petition requires swift, specialised legal support.
At Winding Up Petition Solicitors, our expert lawyers:
Assess Your Legal Defences: Develop fact-based, credible defences targeting the petition debt.
Negotiate With Creditors: Seek structured payments or agreements to avoid liquidation.
Represent You In Court: Provide expert advocacy to meet the court’s evidential standards.
Protect your company’s future by consulting with our specialist insolvency team at the earliest sign of creditor action.
Tailored Advice in First Consultation
We offer a strategic legal review of your winding-up petition risks with clear, actionable advice from your first meeting.
Contact us today at +44 20 7183 0529 or visit our contact page to discuss how we can help safeguard your business.
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:
FAQs
What does it mean when a company is “wound up”?
When a company is wound up, it is legally dissolved through the compulsory liquidation process under the Insolvency Act 1986. This usually happens when a court determines the company cannot pay its debts. Once wound up, the company’s assets are sold by a liquidator to repay creditors.
What is a winding-up petition?
A winding-up petition is a formal legal request made by a creditor to the court, asking that a company be liquidated because it has failed to pay debts exceeding £750. Once filed, it can severely impact a company’s bank accounts and reputation, making early legal advice critical.
Who can issue a winding-up petition?
Any creditor owed £750 or more can issue a petition if the debt is undisputed and remains unpaid. Common petitioners include HMRC, local councils (for unpaid business rates), banks, or suppliers.
How quickly must I act after receiving a winding-up petition?
You should seek legal advice immediately. A company typically has only seven days before the petition notice is advertised in The Gazette. After publication, bank accounts may be frozen, and business operations can halt almost instantly.
Can a company avoid being wound up once a petition is filed?
Yes, but swift action is vital. The company can still avoid liquidation by paying or settling the debt in full, or by negotiating a structured payment plan with the creditor before the hearing.
If more time is needed, the company may apply for an adjournment to raise funds or finalise arrangements. Alternatively, entering a Company Voluntary Arrangement (CVA) or Administration can temporarily suspend proceedings and offer a legal route to restructure the company’s debts.