Wind Up A Company

Can You Wind Up a Company with a Disputed Debt?

Wind Up A Company was the focus in the case of Colt Technology Services v SG Global Group SRL [2020] EWHC 1417 (Ch) the court had this to say about deployment of a winding up petition when the debt in question was disputed:

In my judgment this is a case like that considered by Hildyard J in Coilcolour at [42], where the purpose of invoking the insolvency jurisdiction is to put pressure on a company of which the solvency is not in real doubt, and where there is a dispute as to indebtedness. SGG’s service of a statutory demand was a clear attempt to shortcircuit the Milan appeal proceedings: in which, it must be noted, SGG’s case is that the liability to pay the invoices lies on Colt Italy, not Colt UK. The presentation of a winding-up petition against Colt UK would be an abuse of process and in all the circumstances it is right to restrain SGG from taking that step. I will therefore grant the application

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