Winding-up Petitions And Disputed Debts

NW Publishing UK Ltd (NW Publishing) obtained an injunction restraining Newsweek Publishing LLC (Newsweek) from presenting a winding-up petition based on a statutory demand comprising two alleged debts: a £121,000 rent deposit and £180,000 paid under a lease guarantee. NW Publishing disputed liability, relying on the parties’ historic funding arrangements and their alleged “symbiotic relationship”.

Before the injunction application, Newsweek rejected NW Publishing’s claim that the debts were disputed in a lengthy letter and refused to undertake not to present a winding-up petition as requested by NW Publishing. Instead, Newsweek only agreed short extensions to allow NW Publishing to respond. NW Publishing subsequently paid the £180,000 sum. When the final extension expired without Newsweek responding to a further request for an undertaking and extension, NW Publishing obtained a without-notice injunction. Newsweek later gave a permanent undertaking not to present a petition, leaving