TSMP’s restructuring and insolvency expert Felicia Tan penned an article for INSOL’s I-Read newsletter—the worldwide federation of national associations for accountants and lawyers who specialise in turnaround and insolvency—setting out how debtors in Singapore should respond to statutory demands.

The piece outlined the playbook for responding to a statutory demand: move quickly and engage. Felicia explained that while creditors can use non-payment as grounds to seek liquidation, debtors may apply to set the demand aside and there is room to negotiate before the first hearing. She noted that raising genuine, arguable issues can resist a winding-up bid and many applications do not end in liquidation. Even after a winding-up order, the Court may stay or terminate the process if circumstances change, weighing creditor interests, solvency, public interest and commercial morality. She also suggested mediation as a pragmatic alternative. Bottom line: act immediately to preserve value.