From today (1 April), creditors can present a winding up petition without (a) having to give 21 days to the debtor company to make proposals to pay, and (b) being owed a debt(s) of £10,000. Given that all temporary restrictions and processes have now ended, the ‘gloves are off’ when it comes to debt collection.
Although presenting a winding up petition incurs a hefty court fee, the effect (or even threat) of a winding up petition can elicit a swift payment to avoid the consequences that an outstanding petition can present to a debtor company, including
- reputational impact,
- director duty concerns – wrongful trading/misfeasance,
- the company’s lender freezing its bank account(s),
- the risk of making payments that can be clawed back if the company is wound up; and
- ultimately a winding up order.
As the conflict in Ukraine enters its second month and the list of sanctions and restrictions imposed by the United States, the European Union and other countries increases to punish Russia, the effects of the sanctions will become more apparent and are expected to have profound and lasting effects on a large number of industries. These sanctions and other restrictions on the flow of capital will also have a long-term impact on Russian investments all over the world, as sanctions are placed on a large number of Russian financial institutions, companies, as well as certain Russian citizens close to Putin’s regime. The recent filing of the chapter 11 case of the New York-based company Buyk Corp. (Buyk) is a case on point.
A lot is said about directors’ duties – ensuring that they are complied with to avoid potential claims resulting in personal liability – and that remains the case. However, as officers of a limited liability company, directors should also be aware of the circumstances in which they could be personally liable for the company’s tax debts.
As part of our business recovery and resilience series, our fourth video from Aysha Fernandes (Commercial Finance Director at UK Finance), answers this question as well as commenting on what trends UK Finance have been seeing as we start to come through the pandemic. To listen to Aysha’s answer click 
On Tuesday, March 22, 2022, Squire Patton Boggs and the American Bankruptcy Institute hosted a webinar titled “The Conflict in Ukraine: Impact on Capitals, Markets and Boardrooms.” The webinar featured a distinguished panel of Squire Patton Boggs professionals, including former Speaker of the US House of Representatives 
As part of our business recovery and resilience series, our third video from Rob O’Hare (PSL in our Tax team), responds to the question: How should companies approach HMRC for support and what support might they expect? To listen to Rob’s answer click 
In the second of our short videos in relation to business recovery and resilience, John Alderton (Partner in our Restructuring & Insolvency team), responds to the question:
