Winding Up Petition

A winding-up petition is a legal request made to a court to shut down a company that is unable to pay its debts. When creditors believe a business cannot meet its financial obligations, they may file this petition to initiate the process of liquidating the company's assets, distributing any remaining funds to creditors, and formally dissolving the company. This is often seen as a last resort after other debt recovery methods have failed. The court examines the situation and can ultimately order the company to be wound up if it finds sufficient grounds.