A reported settlement does not tell you the court proceeding status
Verify the actual status of another creditor winding-up proceeding after hearing the applicant may have settled.
Corporate Recovery Partners
01 / 06
The debtor says the application is sorted
Another creditor has filed a winding-up application against your customer. The customer then says it paid that creditor and the matter is over. Get current legal advice and verify the proceeding's status before relying on that statement. A payment report does not give you the full court record or explain what it means for your own unpaid account.
Imagine a supplier owed money by a builder that forwards an email saying the applicant has been paid. Match the case details and company identity to the proceeding your adviser is reviewing. Keep the email and ask what official information is needed. Do not assume a message about a related company or different account answers the present question.
Reconcile your own invoices, payments and disputes. The other creditor's payment does not mean your claim has been resolved. Give the lawyer the current account and ask how the changed information affects any step under consideration. Avoid making a new threat simply because the applicant may no longer be pursuing the same commercial objective.
ASIC explains that court liquidation involves appointment of a liquidator by the court following an application. Ask your lawyer what orders, if any, have actually been made and the current procedural position. This article does not assume the report means dismissal, adjournment or liquidation. Those outcomes need to be established from reliable current information.
If the business was planning further supply or changing its cash forecast because the case was supposedly resolved, revisit those assumptions. In the supplier's example, payment of another creditor does not establish the builder's ability to pay new orders. Review any proposed commitment on its own facts and the relevant advice.
Record the verified result and the source, and ask who will monitor any next relevant date. Obtain timely advice about your own options rather than waiting for the customer's next informal update. The useful distinction is between a claim that a creditor has been paid and confirmed information about what is happening in the proceeding.
