{"id":354,"date":"2014-05-30T07:33:16","date_gmt":"2014-05-30T07:33:16","guid":{"rendered":"http:\/\/alexchanglaw.com\/services\/winding-up\/"},"modified":"2021-02-22T14:45:55","modified_gmt":"2021-02-22T06:45:55","slug":"winding-up","status":"publish","type":"page","link":"https:\/\/alexchanglaw.com\/index.php\/services\/winding-up\/","title":{"rendered":"Recover Your Debts- Pay Up or Wind Up Unsecured Creditors"},"content":{"rendered":"
\"Alex<\/a>
Companies Winding Up Handbook<\/figcaption><\/figure>\n

Unsecured Creditors Recover Your Debts- Pay Up or Wind Up<\/h3>\n

\u4e2d\u6587\u7248<\/a>
\nVersi Bahasa Malaysia<\/a><\/h6>\n

In the recovery of your debts, we regard a winding up petition as one of the most effective methods. \u00a0 The sharpest tool in the box.<\/p>\n

Unsecured Creditors Get Paid Ahead of the Bankers- the Concept of Pay Up or Wind Up<\/h3>\n

Many creditors have this\u00a0 idea that if we\u00a0\u00a0 wind up our\u00a0 debtors, \u00a0 the bankers will be the biggest benefactor…\u00a0 The bankers will be entitled to sell all the assets and pay themselves.<\/p>\n

The Remedy: Unless Order<\/h3>\n

We have to ask for a perfectly ‘timed’ Order,\u00a0 just before the winding up Order is granted.\u00a0\u00a0 In this Order, the debtors are given an opportunity to pay the debts by a certain deadline otherwise they will be wound up by the Court.\u00a0\u00a0\u00a0 We call this the ‘unless order’, or the ‘pay up or wind up’ order.<\/p>\n

The concept of an Unless Order first entered\u00a0 the Malaysian Jurisprudence in the year 2003, when Mr Alex Chang\u00a0\u00a0 appeared in , KTL SDN BHD V. AZRAHI HOTELS SDN BHD [2003] 3 CLJ 49 at page 51, where you can find\u00a0 the following extract from the Original Judgment<\/a> of Dato Vincent Ng J (as he then was):<\/p>\n

Mr. Alex Chang<\/strong>, who appeared for the second supporting creditor, suggested that the Respondent be given an opportunity to resolve the matter, failing which the winding up order be made. In all fairness, he suggested a later date, sometime in mid April 2002. His suggestion was enthusiastically received by Mr. Puspanathan.<\/em><\/p><\/blockquote>\n

The Difficulty<\/h3>\n

The\u00a0 timing of the request is most crucial, if you make the suggestion too early during the hearing, the Judge may be annoyed as we as counsel (lawyers)\u00a0 may not preempt (forecast)\u00a0 what is on the mind of the Court.\u00a0\u00a0 The Court may ask us in turn, “…how could you be so sure that the Court will grant the winding up order?”<\/p>\n

On the other hand, if we ask a little too late, the winding up order would have already been granted and the Court may not change the order.<\/p>\n

What If We Did Not Ask For an Unless Order<\/h3>\n

If an unless order is not granted, the usual winding up order will be made and the debtor company will be wound up in the usual fashion, that is, the bankers will be paid first.\u00a0 To find out more read click here What happens after compulsory winding-up<\/a>?<\/p>\n

Must I obtain a Judgment BEFORE filing a winding up petition against my debtors?<\/h3>\n

The general rule is no, to read more click here<\/a>.<\/p>\n

Inquire About This Service<\/a><\/p>\n

Debt Recovery Checklist<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Unsecured Creditors Recover Your Debts- Pay Up or Wind Up \u4e2d\u6587\u7248 Versi Bahasa Malaysia In the recovery of your debts, we regard a winding up petition as one of the most effective methods. \u00a0 The sharpest tool in the box. Unsecured Creditors Get Paid Ahead of the Bankers- the Concept of Pay Up or Wind […]<\/p>\n","protected":false},"author":1819,"featured_media":5937,"parent":351,"menu_order":70,"comment_status":"open","ping_status":"closed","template":"","meta":[],"_links":{"self":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/pages\/354"}],"collection":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/users\/1819"}],"replies":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/comments?post=354"}],"version-history":[{"count":36,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/pages\/354\/revisions"}],"predecessor-version":[{"id":8464,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/pages\/354\/revisions\/8464"}],"up":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/pages\/351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media\/5937"}],"wp:attachment":[{"href":"https:\/\/alexchanglaw.com\/index.php\/wp-json\/wp\/v2\/media?parent=354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}