Liquidation Query

I ran a small building company and ran in to a bit of truble when I had not the funds to complete a small building dwelling house for Local Authority. This happened last year, I informed the Local Authotity and I have since left the building trade. The LA made no comment at the time and I am doing some other work (not constructed related) through the same company in the meantime.
Recently I have recieved correspondence form the Local Authority requesting 'have I liquidated the company?'. I have no idea what this means regarding my legal obligations to the LA and to my new business going forward. Could anyone advise please?

When you say "company" did you actually run a limited company? If so, what became of the company when you left the trade?

Yes Graham, the company was a limited company. The company remained but for the latter half of last year and the earlier part of this year there was very little trading. I went in my head and took on the project with the Local Authority and was left with no funds to complete. For the last 12 months the LA did not respond to my indication that I was unable to complete the project up until now. In the meantime I have started doing other work through the company but now fear this this other issue may interfere with its development

If the company is still trading, is not insolvent but cannot complete a contract for which it successfully tendered, then you may need to take legal advice on your position.

I presume the LA I trying to assess whether they can make a claim against your company? You really should have liquidated the building company and started a new company!