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Buachaill, Barrister
Category: Law
Satisfied Customers: 10984
Experience:  Barrister 17 years experience
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If we're considering bringing a winding up order against a

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If we're considering bringing a winding up order against a company for non payment (we strongly suspect they're insolvent), are we allowed to contact other potential creditors prior to bringing it to see if they want to collaborate?
English law.
Many Thanks :)
1. Dear Stefan, there is nothing to prevent you contacting other creditor should you wish to bring a winding up application in relation to a company. You can collaborate with other creditors if you wish to do so. However, I would suggest that you servie your statutory demand first so as to see if the company will pay you off once insolvency is threatened. Many companies will pay off a creditor if they serve a Statutory demand as this buys them time. It is only if you have to initiate insolvency proceedings that it helps to have other creditors on board. Then you can get them to back you. However, you might find the company will pay you if you serve a Statutory Demand.
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2. The idea of a winding up is that all creditors get treated equally - pari passu. However, fi you serve a Statutory Demand you will get paid in full if the company has the money. So you should hold off contacting other creditors until you see if the company will pay you in full. It is only f they don't pay you in full that you should then contact other creditors.
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