What are the possible outcomes of a Winding Up Petition?

Once a Winding Up Petition has been filed at court and the debtor company has been served the petition then, if the debtor company settles its debt before the petition is advertised in the Gazette the petition is usually removed.

If the debtor company settles the debt or agree a payment arrangement after the petition has been advertised, then that will remove the debt from the petition, but the debtor company will still have to abide by its legal obligations imposed upon it, such as its bank account remaining frozen.

Additionally, other creditors could join the still active petition using what is known as a ‘notice of support’. If the debt is not settled, nor a payment arrangement reached, then the court could issue a Winding Up Order at the hearing if it believes the conditions to do so are satisfied, leading to the debtor company being wound up.