Hereford United are due back in the High Court tomorrow.
At a hearing last Monday the winding-up petition brought by former manager Martin Foyle was adjourned for seven days after it's thought a CVA proposal was suggested.
Any CVA proposal would probably give majority shareholder Tommy Agombar a chance to try and cut the amount of money due to creditors by the club.
Below is some information about winding-up petitions from taxgone.co.uk
What is a Winding up Petition?
A Director will often view a winding up petition as a request for payment. Technically it is not but in reality, it often is!
A winding up petition is actually a request to the Court, from a creditor that is owed more than £750, for the Judge to close the company. The petition, “petitions” other creditors to support the application.
If the Judge agrees to close the company then the Court issues a winding up order.
The Company ceases to trade, its bank account is frozen and the company shuts its doors.
The Official Receiver, a Government civil servant, then investigates the company and the conduct of the directors. The assets are liquidated to pay of the debts of the company, by a nominated Insolvency Practitioner.
HMRC Winding up Petition
A winding up petition from the HMRC is just the same as from any other creditor – however, if your company has received one, then it is only natural that you will be worried.
HMRC Winding up Petitions are only issued when a director fails to communicate and/or fails to pay taxes to HMRC.
Frozen Bank Account
If a director wants to keep the company then the last thing that the director wants is a frozen bank account. A winding up petition is advertised in the London Gazette which can often lead to your bank account getting frozen. TaxGone can assist in attempting to prevent this by creditor consent or with an injunction, followed by an application to adjourn the winding up petition to allow the preparation of a Company Voluntary Arrangement.
Get Rid of a Winding up Petition
The aim of a director should be to get rid of a winding up petition as fast as possible. There are several ways of doing this:
The debt could be paid in full, plus costs and the winding up petition would be dismissed on the hearing date, unless another creditor substitutes.
The director could make a deal with the creditor to dismiss the petition at the next hearing on the basis that agreed payments are made over a period of time. It is unlikely that the creditor would do this unless the director provides a personal guarantee.
The director could instruct TaxGone to prepare a Company Voluntary Arrangement. The winding up petition could be adjourned or dismissed at the next hearing provided that the company voluntary arrangement was accepted.