Received A Winding Up Notice?

You must act now! There are some documents that just can’t be ignored!

Insolvency Solutions

Don’t Ignore a Winding up Notice

If a creditor has filed a Notice of Winding Up under Section 459P of the Corporations Act – You need to take act immediately. Even late in the day, there are options that may be available to you.

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Options Are Still Available

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Know Your Obligations

If you’ve received a Statutory Demand and you have failed to respond to it, or made an application to set it aside, within 21 days, your company will be deemed to be insolvent – even if it has an surplus of assets to liabilities.

The creditor that issued the Statutory Demand can then make an Application to issue a Winding Up Notice to your company.

When a creditor does this, they are also required to lodge, with the Australian Securities and Investments Commission (“ASIC”), the Notice of Intention to Wind Up your company and to place an advertisement in a national newspaper indicating the applications hearing date.

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At this point, the matter becomes public knowledge and available for anyone to see. As many businesses review these notices on a daily basis, this alone may have a negative effect on your business.

Once the winding up application is issued, and even if you settle the debt with the original creditor, another creditor can file a Notice of Appearance and make an application to substitute their claim against your company.

From there you will have to pay the second and any subsequent creditors that file Notices of Appearance.

So apart from potentially damaging information becoming public, you may have to deal with and pay more than one unhappy creditor. Of course this could also see you incur legal costs in trying to deal with each claim.

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