Indonesia Authors: Miriam Andreta and Hans Adiputra Kurniawan 1. Bankruptcy and Liquidation: Updates Brought by PPSK Law With respect to bankruptcy and liquidation of certain parties (public listed companies, banks, non-bank financial institutions), there are certain updates and clarifications set out in Law on Development and Improvement of Financial Sector (also known by its local abbreviation “PPSK Law”) - which came into effect on 12 January 2023 (except for certain provisions that are explicitly intended to take effect otherwise).

1. At the Debt Restructuring in the Asia-Pacific seminar on 22 September 2022 co-organised by Singapore International Commercial Court, INSOL International & INSOL Asia, Singapore’s Second Minister for Law Mr Edwin Tong SC announced that Singapore will be undertaking “a root-and-branch study”^[2] of the judicial management regime in Singapore.

简介

在 2022 年 12 月，中国最终结束了长达 3 年的新冠疫情遏制措施。作为按名义 GDP 计算的世界第二大经济体和按购买力平价计算的最大经济体，世界一直在屏息期待着中国经济在推动全球经济反弹中做出贡献。

尽管中国在 2023 年第一季度实现了4.5% 的增长，但信号仍然喜忧参半。 《南华早报》2023 年 4 月 30 日报道称，中国制造业采购经理人指数下探 49.2，为改革开放后的最低水平。 文章称，国家统计局的一位高级经济师认为，4月份下滑的主要原因是“市场需求不足和一季度制造业快速复苏的高基数效应”。 这显示，中国的提振效应需要时间来沉淀。 与此同时，许多公司和企业集团可能在陷入困境并寻求整顿、重组或清算。 这其中不乏在全球各地都有投资和业务的公司和企业集团。

Introduction

The law is constantly developing to fit the ever-changing world. Most recently, with the digitalisation of the commercial landscape and the proliferation of cryptocurrencies, NFTs and metaverse-related businesses, the courts have had to apply or adapt the law to deal with novel situations. This was the case in Re Babel Holding Ltd and other matters [2023] SGHC 98, where the Singapore High Court had to apply restructuring and insolvency law in the context of a cryptocurrency-related business.

Globalisation means that the effects of a business entering insolvency proceedings rarely stay within the territorial confines of a single jurisdiction; one need only look to the recent cryptocurrency bankruptcies as evidence of this. Cross-border insolvencies are no longer the preserve of large multinational corporation failures. Globalisation and the advent of digitisation mean that even small enterprises have customers, assets, and suppliers in multiple countries. This is particularly so across Asia.

In Re Zipmex Pte Ltd and other matters [2023] SGHC 88, the Singapore High Court imported into the Singapore restructuring regime the US concept of an "administrative convenience class" in a scheme voting exercise. This concept allows debtors to obtain an approval from a large number of low value creditors without those creditors being involved in the voting exercise. This reduces the administrative burden on restructuring entities.

There are unique risks that lenders should consider when extending credit to a real estate investment trust (“REIT”). The rights that a lender might expect to have when lending to an incorporated company are not necessarily the same as when lending to a REIT.

Introduction

When a company enters financial trouble, the Singapore restructuring and insolvency framework provides a number of avenues through which the rights of the company's creditors may be addressed. Amongst these avenues, receivers may be appointed pursuant to an instrument to enforce a secured creditor's rights. Judicial managers may also be appointed by the Court to manage the business and assets of the company.

Re Kirkham International Pte Ltd (in compulsory liquidation) [2023] SGHC 19 (Kirkham) has important practical implications for liquidators. The General Division of the High Court (High Court) held that a liquidator’s appointment of solicitors, when approval is required under section 144 of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), cannot be retrospectively authorised.

Background

In the tenth edition of Going concerns, Stephenson Harwood’s restructuring and insolvency team covers the innovative attempt by a distressed company to shut out low-valued creditors in a scheme of arrangement, the utility of the Singapore recognition of foreign insolvencies regime to assist international liquidations, and the factors which the Singapore Courts will consider when deciding whether to stay a bankruptcy application. It has been a pleasure preparing these articles over the past five years and a big thank you to our readers!

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