The Secretary of State for Business, Innovation & Skills has presented a petition in the High Court to wind up 123 Finance Ltd in the public interest.

The company, which traded from premises in Bolton, signed up members of the public, who were experiencing severe financial difficulties, to a debt management plan under which it attempted to negotiate a settlement with their creditors in return for a fee.

The petition to wind up the company was presented following an investigation carried out by Company Investigations Directorate of the Insolvency Service under section 447 of the Companies Act 1985 (as amended).

The Official Receiver has been appointed provisional liquidator of 123 Finance Ltd. The role of the provisional liquidator is to protect assets in the possession or under the control of the company pending the determination of the petition. The provisional liquidator also has the power to investigate the affairs of the company insofar as it is necessary to protect the assets including any third party or trust monies or assets in the possession of or under the control of the company.

The case is now subject to High Court action and no further information will be made available until the petition is heard in the High Court on 1 June.