This is the most serious action a creditor can take against your company and matters generally escalate to this extent over a period of time where the creditor is tired of chasing payment.
A Creditor must be owed at least £750 to apply for a Winding-Up Petition.
A Winding-Up Petition will result in a company’s bank account being frozen as soon as the bank becomes aware. This will effectively cause the business to cease trading unless it has sufficient cash to continue.
Additional Creditors will have the opportunity to ‘piggyback’ on the back of the original petition should they also become aware of it