Litigation survival guide - part 5. Responding to the threat of winding-up

Although service of a statutory demand or winding-up petition on a company is a blunt and unsophisticated debt recovery tool, it will often have the desired effect for a creditor as they are seldom ignored and ignored only at the company's peril. It can often prompt payment of the sum due, or judgment owed, where previously there has been prevarication and empty promises of payment.

Read Wragge & Co's reminder of important issues a (solvent) company should consider if a statutory demand or petition is served upon it.