Our client was served with a winding-up petition in respect of a disputed debt. We were successful in obtaining an interim injunction to restrain the advertisement of the winding-up petition on the basis of the dispute.
In addition, we were successful in obtaining an order for security for costs, on production of evidence that the creditor was impecunious and unable to pay our client’s costs, in the event that the petition was successfully defended. This meant that the creditor could not proceed with the petition, until it had paid a sum representing our client’s likely costs into court.
This success meant that our client was protected from adverse publicity concerning the winding-up proceedings and the risk of having its bank account frozen. It also meant that our client was in a position to come reach settlement with the creditor, avoiding the costs which would have been associated with a disputed petition hearing or indeed any ‘ordinary’ proceedings.