NW Publishing UK Ltd (NW Publishing) obtained an injunction restraining Newsweek Publishing LLC (Newsweek) from presenting a winding-up petition based on a statutory demand comprising two alleged debts: a £121,000 rent deposit and £180,000 paid under a lease guarantee. NW Publishing disputed liability, relying on the parties’ historic funding arrangements and their alleged “symbiotic relationship”.
Before the injunction application, Newsweek rejected NW Publishing’s claim that the debts were disputed in a lengthy letter and refused to undertake not to present a winding-up petition as requested by NW Publishing. Instead, Newsweek only agreed short extensions to allow NW Publishing to respond. NW Publishing subsequently paid the £180,000 sum. When the final extension expired without Newsweek responding to a further request for an undertaking and extension, NW Publishing obtained a without-notice injunction. Newsweek later gave a permanent undertaking not to present a petition, leaving costs to be determined.
The court held that NW Publishing had been justified in seeking injunctive relief. Newsweek knew that the rent-deposit debt was disputed but nevertheless maintained its entitlement to present a petition. The court emphasised that presenting a winding-up petition in respect of a disputed debt constitutes an abuse of process and is a “high risk strategy”.
The court also rejected Newsweek’s allegations that NW Publishing had breached its duty of full and frank disclosure. The application had been fairly presented and the alleged omissions were immaterial. Newsweek’s criticisms largely concerned competing legal analyses for determination in ordinary proceedings, rather than whether the debt was disputed on substantial grounds.
Newsweek was therefore ordered to pay NW Publishing’s costs on the indemnity basis.
NW Publishing UK Ltd v Newsweek Publishing LLC (a company incorporated under the laws of New York State, USA) [2026] EWHC 1882 (Ch)
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