Winding up petitions can feel like a deathblow. They’re pretty fatal, business-wise, and it’s something that no entrepreneur would wish for. After all, who wants creditors to be breathing down your neck and working to bring your company to a full on forced liquidation?
But in the event that such a situation rises to the surface and becomes inevitable, it is important to hold your ground and act wisely and fast. Your reaction towards it will make or break the company. It can either ease out the trouble or hasten the mess. To go for the former, here is how to react when business is faced with winding up petitions.
- Take a Breath – It’s easy to panic in dire cases like this but doing so will do absolutely no good. If any, it’ll only waste your precious time and make your head go whack. So take a breath and compose yourself. You need to face this matter with a leveled head. There’s no time to go crazy.
- Rally Up Your Team – This is not a one-man job. You’ll definitely need your team and most especially an insolvency expert and practitioner to help you assess the situation and hopefully walk out of the situation unscathed, where possible.
- Bring Out the Records – It’s about time to check up on your financials and be realistic. There’s no need to dilly-dally and deny an insolvency problem should it be present.
- Open Communication Lines – Don’t hide from your creditors or else they’ll get all the more flared up. Be cooperative and open communication lines. It is important to hear out both parties. You never know, doing so can even open up chances for a better solution other than a forced liquidation.
- Run Through Options – Depending on your unique scenario, certain alternatives to the problem can be had. It is important to carefully but quickly assess all these to find a solution that can bring out the most good and the least losses.
- Act Fast – Once a winding up petition has been served to court, the company is only given seven days before an order or decision is released. It is only within such time span where entrepreneurs can try to make creditors change their mind and arrange for an agreement or contest the value of the claims. Time is obviously of the essence so there should be no procrastinating.