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Singapore unveils major debt restructuring law reforms

Singapore’s Ministry of Law has unveiled significant proposed changes aimed at revising Singapore’s restructuring and insolvency laws and developing Singapore into a regional debt restructuring hub.1

IN BRIEF

Draft legislation unveiled

Singapore, Insolvency & Restructuring, Herbert Smith Freehills LLP, Debt restructuring
Recognition of foreign insolvencies at common law: Singapore sets COMI precedent

In Brief

For the first time, a court has adopted the ‘centre of main interest’ (COMI) as grounds at common law to recognise foreign insolvency proceedings.

The decision earlier this year by the High Court of Singapore (the Court) recognised a Japanese bankruptcy trustee appointed to companies incorporated in the British Virgin Islands (BVI):

Singapore, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Herbert Smith Freehills LLP, Liquidation, Common law, UNCITRAL, Singapore High Court
Australia's Insolvency and Bankruptcy Law Reform: ipso facto clauses

Major insolvency reform: Getting the (ipso) factos straight

In brief

Australia, USA, Insolvency & Restructuring, Herbert Smith Freehills LLP, Bankruptcy
Australia's Insolvency and Bankruptcy Law Reform: Safe harbour

In brief

Australia, Insolvency & Restructuring, Herbert Smith Freehills LLP, Bankruptcy
Australian Government forges ahead with major insolvency law reform

On 29 April 2016, the Australian Federal Government (Government) announced three major insolvency law reform proposals in its Improving Bankruptcy and Insolvency Laws Proposal Paper1 (Proposal). The Government has invited submissions from stakeholders and given this is a rare opportunity to undertake substantial reform, we strongly encourage involvement. 

Australia, Insolvency & Restructuring, Herbert Smith Freehills LLP, Stakeholder (corporate)
Bankruptcy PLR with NOL preservation result

Section 382 limits a loss corporation’s ability to use its Net Operating Losses (NOLs) carryforwards following an "ownership change."1 An ownership change is triggered if one or more "5-percent shareholders" of the loss corporation increase their ownership in the aggregate by more than 50 percentage points during a testing period. Following an ownership change, the "Section 382 limitation" generally reduces the ability to use NOLs to offset taxable income in any post-change year.2

USA, Insolvency & Restructuring, Tax, Troutman Pepper, Bankruptcy, Interest, Debt, Internal Revenue Service (USA)
Proposed regulations regarding the deferred loss rules for controlled groups: not all good but not all bad

On April 20, 2011, the IRS issued proposed regulations under Treas. Reg. §1.267(f)-1(c) (the Proposed Regulations), which will become effective after they are adopted as final regulations. The Proposed Regulations modify the current deferred loss rules to allow the acceleration of a deferred loss in certain circumstances that routinely arise in international restructurings of U.S. companies. Accordingly, corporations in a controlled group that are considering a sale to another member of the controlled group should evaluate the consequences under the Proposed Regulations.

USA, Insolvency & Restructuring, Tax, Troutman Pepper, Retail, Liquidation, Subsidiary, Internal Revenue Service (USA)