June 2017

Contents

Introduction 1. Better accessibility to Singapore's corporate rescue and restructuring framework for foreign companies 2.Chapter 11 style - Rescue financing / DIP financing 3.Enhanced moratoriums with extra territorial effect 4.Increased disclosure, cram-downs and pre-packs 5. The adoption of UNCITRAL Model Law Conclusion Your contacts

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2017 Singapore Insolvency and Restructuring Reforms June 2017

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Introduction

Back to the future – but no idea when What Brexit could mean for the Anglo-European restructuring industry What happens now? On 23 June 2016, the UK voted to leave the European Union. The nature of the UK’s relationship with the EU and the rest of the world, post-Brexit (if and when Brexit happens), is uncertain. So what do we know? Actually, we do know several things: – Legally speaking, the referendum result has no immediate effect. It is only advisory.

Hogan Lovells Corporate Insurance Newsletter June 2014 UK  PRA publishes PS5/14: PRA Rulebook  PRA publishes statement of policy on the financial stability information power  The PRA’s approach document to insurance supervision updated  PRA publishes SS7/14: Reports by skilled persons  PRA publishes statement of policy on the use of PRA powers to address serious failings in the culture of firms  PRA publishes its annual report and accounts 2014  FCA publishes a market study into retirement income: revised terms of reference  FCA publishes FG14/6 - Annuity comparison websites: financ

Singapore is getting serious about becoming the region’s international insolvency hub. In this inaugural podcast from the International Insolvency Institute, Hon. Kevin Carey (Ret.) of Hogan Lovells discusses Hon. Christopher S. Sontchi‘s forthcoming move from Delaware bankruptcy judge to International Judge of the Singapore International Commercial Court (SICC).

In several Commonwealth jurisdictions, the corporate legislation allows creditors to petition a court to order the winding up of a debtor in circumstances where that debtor is unable to pay its debts as they fall due. Such legislation generally presumes that the debtor is insolvent if it has failed to comply with a statutory notice requiring the debtor to pay a certain debt within a given period of time (a statutory demand).

Many businesses – from manufacturers ("OEMs") to retailers - are reliant on receiving regular supplies from third parties for their trade. COVID-19 has produced an instant global economic shock that is – inevitably – affecting global supply chains. It is unclear whether the economic effects of COVID-19 will be long or short term, but here are some of the things that businesses which are dependent on their supply chain should be asking themselves.

What is the length of the supply chain and what jurisdictions does it cross?

Financial institutions continue to prepare for the anticipated cessation of the publication of the London Interbank Offered Rate (LIBOR) benchmark after the end of 2021 and its replacement with “risk-free” overnight rates, including reformed SONIA (for sterling) and the new SOFR rate (for U.S. dollars). Transitioning affected financial products to the new rates and amending legacy books is a massive project for any sizable institution.

EBITDA first rose to prominence in the US leveraged buy-out craze of the 1980s and has since formed the key metric of leveraged finance transactions across the world. In this article, we focus on its evolution in the European loans market, and explore how financial covenant and certain other protections in loan documentation have been eroded in recent years as a result of those changes.

This article first appeared in the November edition of Butterworths Journal of International Banking and Financial Law. 

On 8 February 2018, the Hong Kong Court of First Instance (the “Hong Kong Court“) ruled that the common law power to recognise and assist foreign insolvency proceedings extends to voluntary liquidations – this is the first authority on this issue in Hong Kong.

Case: IN THE MATTER of an application for recognition and assistance by the Joint Liquidators of Supreme Tycoon Limited (in liquidation in the British Virgin Islands) [2018] HKCFI 277

On 9 November 2017, in a rare example of a contested recognition hearing, His Honour Judge Paul Matthews granted recognition of Agrokor’s extraordinary administration (EA) as a foreign main proceeding under the Cross-Border Insolvency Regulations 2006 (CBIR).