Key Facts
- •Applicant company seeks injunction to restrain HMRC from presenting a winding-up petition for an undisputed debt of over £1.5 million.
- •Applicant claims imminent business sale will allow full debt repayment.
- •Applicant's cashflow insolvency is undisputed.
- •HMRC had previously granted two 'Time to Pay Agreements', both defaulted.
- •Applicant's proposed sale to 'Compass' is uncertain, with no binding offer.
- •Applicant had also explored a share sale to 'Boundary', which was abandoned.
- •Applicant employs 130 employees and 10 apprentices.
Legal Principles
The court has a broad discretion to restrain presentation of a winding-up petition if adverse to creditors' interests.
Insolvency Rule 7.24; Travelodge Hotels Ltd v Prime Aesthetics Ltd [2020] EWHC 1217 (Ch)
A winding-up petition may be considered abusive if not acting in the interests of creditors as a whole, or if its success disadvantages creditors.
Re Maud, Maud v Aabar Block [2015] EWHC 1626 (Ch)
The court has unfettered discretion to adjourn, grant, or dismiss a winding-up petition.
Re Minrealm Limited [2007] EWHC 3078 (Ch)
Outcomes
14-day injunction granted, restraining HMRC from presenting a winding-up petition.
To allow applicant a final opportunity to finalize the sale to Compass; avoids prejudice to HMRC if sale is successful; balances interests of creditors.
Applicant ordered to pay respondent's costs.
Applicant sought considerable court indulgence, presenting crucial evidence late; considering the limited success and applicant's insolvency.