From the administrators' statement

The Company was in dispute over an amount owing to Leeds Commercial Ltd who subsequently presented the Company with a winding up petition on 19 October 2016 with the hearing convened for 13 December 2016 Due to the petition being advertised the Company's bank froze its accounts meaning the Company was unable to continue trading The Company instructed an independent broker for business finance to provide advice and look at refinancing options The broker made contact with Begbies Traynor on 22 November 2016 to discuss the options available to the Company Begbies Traynor met with the director of the Company on 23 November 2016 and 25 November 2016 Begbies Traynor issued their engagement letter to the Company's director on 24 November 2016 which was signed and returned by the director on 02 December 2016

Begbies Traynor advised the director that unless a validation order was obtained to allow the Company to trade the Company would not be able to access its bank accounts and any payments made from the Company without a validation order may be void under section 127 of the Insolvency Act 1986 The Company sought advice about applying for a validation order but were advised that they were very difficult to obtain and extremely costly, this is supported by recent case law Furthermore, the options available to the Company were

« Pay Leeds Commercial Ltd for the outstanding debt and hope the petition be withdrawn at the heanng and in the meantime attempt to obtain a validation order from the court to allow the Company to trade up to the hearing date,

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Power Line Distribution Limited (09055075)

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