QLD Stop a Winding up Application

[Martinqld17]

Hi

This week a Law Firm issued the company with Draft Application to Wind Up Notices after a Letter of Demand was overseen and not responded to.

We have since been in discussions and they have advised the filing willl take place if cleared funds are not recieved prior to 4pm Friday 10th, tomorrow. We have arranged funds and requested an extension until Tuesday to arrange for Settlement and they are denying any extensions, what can be done?

 

[Clancy]

We do a few winding up applications in my company because of credit terms customers not paying.
There are always repeated stories of 'going to pay' but they never do, so at some point you have to draw a line.

Now a winding up order relies on your company being insolvent, so if you have funds, you will not be wound up if it goes to court, you will simply tell the judge you can pay and he will make the orders for you to pay, (plus legal costs) case closed.
Even if they make the winding up application, it will be some time before the court case, it is usually during this time that our defaulting customers settle with us... often for less than what was originally owing! We are under pressure to settle in this way because if we make them insolvent, then we will wind up as a beggar grasping at the crumbs in the line with all the other creditors at the receivers table!!

Anyway, the thing that is probably going to be the biggest problem for you is that an application for winding up will go on your ASIC record even if it is later settled and or withdrawn. So future potential creditors will see that and run for the hills!

 

[Martinqld17]

We do a few winding up applications in my company because of credit terms customers not paying.
There are always repeated stories of 'going to pay' but they never do, so at some point you have to draw a line.

Now a winding up order relies on your company being insolvent, so if you have funds, you will not be wound up if it goes to court, you will simply tell the judge you can pay and he will make the orders for you to pay, (plus legal costs) case closed.
Even if they make the winding up application, it will be some time before the court case, it is usually during this time that our defaulting customers settle with us... often for less than what was originally owing! We are under pressure to settle in this way because if we make them insolvent, then we will wind up as a beggar grasping at the crumbs in the line with all the other creditors at the receivers table!!

Anyway, the thing that is probably going to be the biggest problem for you is that an application for winding up will go on your ASIC record even if it is later settled and or withdrawn. So future potential creditors will see that and run for the hills!

Thanks heaps, 100% its our issue that should have been sorted no doubt about it, the pure arrogance of the Lawyer has baffled me when we have offered to supply email confirmation that it is waiting for settlement and his absolute ignorance to even consider an extension of a day is crazy.

We have until 4pm today for "CLEARED FUNDS" which isn't possible, or the Application for Winding up is to be filed, sure if we supplied a Bank Remittance of a Chq deposit or transfer online they wouldnt lodge.

What time can they lodge until with the supreme court?

 

[Clancy]

Thanks heaps, 100% its our issue that should have been sorted no doubt about it, the pure arrogance of the Lawyer has baffled me when we have offered to supply email confirmation that it is waiting for settlement and his absolute ignorance to even consider an extension of a day is crazy.

We have until 4pm today for "CLEARED FUNDS" which isn't possible, or the Application for Winding up is to be filed, sure if we supplied a Bank Remittance of a Chq deposit or transfer online they wouldnt lodge.

What time can they lodge until with the supreme court?

That kind of thing i don't know?

Possibly you can show them an approval for finance? But that depends on where your funds are coming from? Basically they want substantial evidence you are going to pay and not just blowing hot air up their skirt which is what i guarantee they are thinking you are doing.