Are You Winding Me Up?

The impact of the Coronavirus on Winding Up Petitions

One of the inevitable consequences of the social distancing measures put in place by the Government to tackle the Coronavirus is that there will be a significant squeeze on cash flow for many businesses across the country. As less cash comes in, it is inevitable that there will not be enough cash to pay expenses.

Ordinarily, if monies are due and owing from a Company, and the debt is not disputed, a demand for payment can be issued and backed up with the threat to issue a winding up petition if the full debt is not promptly paid. Whilst this can still be done - though that may change shortly, see below - the likelihood of a winding up order being obtained any time within the next 3-4 months appears increasingly unlikely.