“Liquidation can be seen as a way to keep the economy on track. It means that the system is working. Companies that need the money and have a good business plan will continue to be able to borrow, and lenders will have the confidence to lend to them.”
Tris Xavier, Head of Integrated Property Practice at Yuen Law, was quoted in The Straits Times by Chor Khieng Yuit in an article discussing the rise in the number of Singapore-registered companies forced to wind up in 2024.
In the article, Tris shares his expertise on the various reasons a Court may order a company to be wound up, beyond the ability to pay debts. He explains that factors such as shareholder disputes or the company’s business no longer being viable due to market changes can contribute to these decisions.
Tris also addresses misconceptions surrounding the rise in liquidations, particularly the idea that it signals increasing indebtedness amongst Small and Medium-sized enterprises (SMEs) or a broader economic crisis. Instead, he notes that liquidation can be viewed as a mechanism to keep the economy on track, ensuring that the system is functioning as intended.
Read the full article here.
Learn more about Tris Xavier’s insolvency work.
Contact Information
For more information and/or assistance on insolvency matters, you may contact:
Tris Xavier
Associate Director, Head of Integrated Property Practice
E: tris@yuenlaw.com.sg
