In this case report from our Trainee Solicitor Emily Davison, negotiation followed the presentation of a winding-up petition against a company that was registered outside of the jurisdiction. It resulted in our client receiving payment in full plus costs – and the winding-up petition was withdrawn prior to the first hearing.

A local authority instructed us to recover repayment of a debt consisting of liability orders and breached payment arrangements, in respect of unpaid NNDR from a company registered in the Isle of Man. Our client had been struggling to obtain a response from the company and was concerned that the company may look to dispose of UK-based assets.

We regularly assist clients in connection with debtors based outside England and Wales. We advised it was appropriate to pursue winding-up proceedings, due to the company’s connections with the UK. We lodged a winding-up petition with an Application for service of the petition outside of the jurisdiction, setting out; the company’s connections to the UK, that our client had an interest in the distribution of the company’s assets, and that a winding-up order would be beneficial to our client.
We successfully obtained an Order in accordance with the Insolvency Rules (England and Wales) 2016, Schedule 4 Paragraphs 1(2) and (8), allowing us to serve the petition on the company by post, outside of the jurisdiction.

Service of the petition prompted an immediate response from the company. We promptly entered into negotiations with a view to recovering repayment of the debt plus costs, prior to any hearing of the petition, where our client would incur further costs.
Prior to the first hearing of the petition, we reached an agreement with the company whereby it paid the full petition debt and costs. We were therefore able to file, in advance of the first hearing, an application to withdraw the petition, with no order as to costs.

Because we were so proactive in filing an Application for service out of the jurisdiction – alongside the winding-up petition and actively attempting to reach settlement and finalise payment with the company – that we were able to conclude this matter amicably, and prior to the first hearing of the petition.

We therefore avoided any unnecessary legal costs being incurred and obtained the best result for our client, without delay.

Emily Davison
Trainee Solicitor
emily.davison@greenhalghkerr.com
Tel 0333 200 52226

May 2022