A winding up petition does not always conclude at the first listed court hearing. In appropriate circumstances, the court has power to adjourn the petition to a later date.
An adjournment can be critical. It may provide time to negotiate settlement, secure funding, resolve procedural defects or place restructuring measures before the court.
However, adjournments are not automatic. The insolvency court expects clear reasons and credible evidence before granting additional time.
This guide explains when and how a winding up petition may be adjourned under the law of England and Wales.
At a glance
- The court has discretion to adjourn a winding up petition.
- Adjournments may be granted to allow payment, restructuring or further evidence.
- Time pressures increase once advertisement has taken place.
- Consent adjournments are more straightforward than contested ones.
- Strong evidence is usually required if the petitioning creditor objects.
What is an adjournment?
An adjournment is a court order postponing the petition hearing to a later date.
The court may adjourn on application by either party, or of its own motion. The power arises from the court’s general case management jurisdiction under the Insolvency Rules and the Civil Procedure Rules.
Once a petition has been served, strict time limits apply. The petition must be served at least seven business days before the hearing. After service, the petition may be advertised in the London Gazette.
Because advertisement can trigger bank account freezes and commercial disruption, timing is often central to any adjournment strategy.
When might an adjournment be appropriate?
The court will only adjourn where there is a proper reason to do so.
A common situation arises where the debtor company is arranging funding to discharge the petition debt. If credible evidence is provided that payment is imminent, the court may allow time for that to occur.
Adjournments may also be appropriate where:
- Settlement negotiations are ongoing.
- A repayment proposal is being finalised.
- There is a restructuring proposal under active consideration.
- Additional evidence is required.
- There has been a procedural irregularity.
- The creditor has not complied fully with the Insolvency Rules.
Where negotiations are genuine and realistic, the court is often willing to allow a short adjournment to preserve value and avoid unnecessary liquidation.
Does the creditor have to agree?
Not necessarily.
If both parties agree, the adjournment is usually dealt with by consent and the court will often grant it provided the request is reasonable.
Where the creditor objects, the court will scrutinise the evidence carefully. The debtor must demonstrate a real prospect of resolving the petition within the adjournment period.
In cases involving HMRC, the court will expect clear financial evidence supporting any repayment proposal. Mere assertion that funds may become available is unlikely to be sufficient.
What evidence is required?
The court expects evidence, not optimism.
This may include:
- Confirmation of funding arrangements.
- Evidence of asset sales.
- Signed refinancing terms.
- Cashflow forecasts.
- Proof of pending transactions.
If the adjournment is sought to dispute the debt, evidence of the dispute must already have been filed in accordance with the procedural timetable.
The stronger the evidence, the more likely the court is to grant additional time.
What happens if the adjournment is granted?
If the petition is adjourned, it remains live.
This is important.
Until the petition is dismissed or withdrawn, it continues to exist on the court file. If it has already been advertised, other creditors may support it. Banks may maintain restrictions.
For that reason, adjournments should be used strategically and not simply to delay the inevitable.
The commercial realities
For creditors, an adjournment may be sensible where payment is realistically achievable. Liquidating a company rarely results in full recovery for unsecured creditors.
For debtor companies, an adjournment can provide vital breathing space. However, the window is limited. The court will not grant repeated adjournments without compelling justification.
The insolvency jurisdiction is designed to address genuine insolvency, not to provide indefinite time to trade out of difficulty.
Speak to our team
Applications to adjourn require careful preparation and realistic assessment.
We regularly act for both creditors and companies in petition hearings across England and Wales. Whether you are seeking time to pay, negotiating settlement or responding to opposition, we can ensure the court is presented with clear and persuasive evidence.
Early advice is often decisive in whether an adjournment is granted.
