At a Glance
A family owned scaffolding company faced a winding up petition presented by HMRC. The petition contained multiple errors and disputed elements. We challenged the petition successfully, secured its dismissal, and then guided the company through an urgent pre-packaged administration. The sale completed within two weeks, preserving the business and enabling continued trading.
Why the client needed our help
The company had traded for many years and employed a skilled workforce. When HMRC presented a winding up petition, the directors were confronted with immediate and serious risk.
The petition contained a number of inaccuracies and disputed liabilities. However, once issued, a petition carries real commercial consequences regardless of the underlying merits. The directors required urgent advice to prevent compulsory liquidation and to protect the company’s position with customers, suppliers and its bank.
In parallel, it was clear that the company’s financial position required structured intervention. The directors needed advice not only on defending the petition, but also on the most appropriate longer term solution.
How we helped
We carried out an urgent review of the petition and the underlying tax position.
We engaged directly with HMRC, setting out clearly the errors within the petition and the areas of genuine dispute. Through focused negotiation and detailed representations, HMRC was persuaded that the petition should not proceed and it sought dismissal.
With the immediate threat removed, we advised the company on restructuring options. After careful consideration of the available routes, the directors decided to pursue a pre-packaged administration.
We worked closely with the proposed administrators to ensure that the process was implemented swiftly and in compliance with the relevant insolvency framework in England and Wales. The sale of the business and assets was completed within two weeks.
Throughout, we advised the directors on their statutory duties and risk exposure, ensuring that decisions were taken on a properly informed basis.
The outcome
The winding up petition was dismissed.
A pre-packaged administration was completed within a compressed timeframe. The underlying business was preserved and continued servicing its existing client base. Value was protected and the disruption typically associated with compulsory liquidation was avoided.
The directors were able to stabilise the position and move forward with clarity, having addressed both the immediate legal threat and the underlying financial pressures.
