Why the client needed our help
Our client was a company that operated a chain of eight Sri Lankan restaurants across the country. HMRC had petitioned to wind up the Company in respect of historic tax arrears. The winding up petition had been heard by the court twice by the time that we were instructed, and on both occasions our client was able to obtain an adjournment. Our client instructed us the day before the petition was due to be heard a third time. In most cases, this would inevitably result in the Company being wound up by the court.
How we helped
We were able to prepare witness evidence on behalf of our client on an urgent basis, mere hours before the court was due to hear the petition for a third time and almost certainly make a winding up order. This evidence explained the extenuating circumstances that our client had suffered which meant that the making of a winding up order would have been unjust. We also introduced our client to a specialist insolvency practitioner with a view to entering into a Company Voluntary Arrangement (CVA) and sought an ambitious third adjournment of the petition in an attempt to finalise a CVA with the agreement of the Company’s creditors.
The outcome
The court agreed with the submissions that we had prepared on behalf of the Company and adjourned the hearing of the winding up petition. During that period of adjournment we were able to agree a CVA which was duly entered into. The winding up petition was dismissed and the Company was able to continue trading, saving eight restaurants and over 200 jobs.
