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ARTICLE · 11 FEBRUARY 2019

The Basics: How To Wind Up A Corporate Debtor

Gowling WLG
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A company has outstanding debts and it seems they are struggling financially. What can you do to try and get your debts settled?

United KingdomInsolvency/Bankruptcy/Re-Structuring
Alex Jay
Alex Jay
Kanika Kitchlu-Connolly
Kanika Kitchlu-Connolly
Ashley Pigott
Ashley Pigott
Teresa Edwards
Teresa Edwards
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A company has outstanding debts and it seems they are struggling financially. What can you do to try and get your debts settled? Is applying to have the company wound up the answer? Here, we take a look at what you will need to consider before a decision is made and we take a look at the key steps in the process.

What is winding up?

Winding up is also known as compulsory liquidation. It is action taken by creditors of the company which (if successful) will result in the company ceasing to trade and being closed down.

The process is governed by statute which, in the main, is the Insolvency Act 1986 (IA 86) and the Insolvency Rules (England and Wales) 2016 (IR 2016). The IA 86 and the IR 2016 set out the steps that MUST be followed when a winding up petition (WUP) is issued at court. If the evidence in support is accepted by the court a winding up order will be made, placing the company into compulsory liquidation. A liquidator will be appointed, who will either be

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