Written for an insolvency practitioner whose self-written letter to owners of businesses facing winding up had diminished in its effectiveness, this letter takes an understanding and educational tone of voice, working on the principle that recipients will be most likely to respond if advised of their options, rather than if subjected to scare tactics. New business letter for Peter S Wilson.
Act now and you can survive the recent petition for the winding up of your company.
I was sorry to see that a Petition for the winding up of your company has been published in the Business Press.
I know from many years of dealing with business owners who find themselves in this situation what a stressful and worrying time this will be.
My job is to help you to come through this relatively unscathed, and to offer you the opportunity to pick up the pieces and get back into business with a minimum of damage done.
What it will mean for you if the Petition is successful.
If the Winding Up Petition goes ahead and is granted, you may well will be in for what I could only describe as a rather unpleasant time.
The responsibility for administering the winding up of your company will pass immediately to the Insolvency Service. This is likely to involve you in long (and possibly very distressing) interviews with an Insolvency Service officer. Your case will then be handed to an independent Insolvency Practitioner, whose sole interest and responsibility is to sell off the assets of your business for whatever he or she can get for them. The amount raised will have no relationship to the original cost of the assets, nor to their potential worth to you in the future.
A compulsory liquidation of this kind will almost certainly leave you and your fellow directors with nothing at all. The Insolvency Practitioner’s hefty fees will take up the minimal revenues received from the sale of the assets, and zero valuation will be made for the goodwill in the business.
The alternative that gives you control.
There is an alternative option open to you, but this depends on you acting swiftly to head off the winding up Petition before it is heard.
Your option is to appoint your own Liquidator. You will then be working with someone who is sympathetic to your plight, but who is authorised to close down the company for you, legally dispose of its debts and leave you in a position to get started again once this is all over.
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