I recently took on two companies as clients which are related as they are both owned by the same individual. Company A is trading but had supported Company B over a number of years in a venture that never succeeded. As a result there is a large intercompany balance between the two. Provision will need to be made in Company A which may give it negative reserves though it is otherwise profitable. The owner has asked what to do about Company B. My immediate answer is that accounts and tax return should be submitted to HMRC and any liability paid (likely to be nil), then application can be made to strike off.
When I have looked at striking off in context of large groups we had always managed to have a positive balance sheet and I had always presumed there was some rule to this effect. This could be achieved in this case by a deed of release of the debt and I cannot see any tax issues as the companies are connected. But does this have to be done or can an insolvent company be struck off as long as the sole creditor does not object?