Micro and small companies will be able to use a “Simplified Insolvency Programme” to be introduced by proposed amendments to Singapore’s Insolvency, Restructuring, and Dissolution Act 2018 (IRDA).

On September 14, 2020, the US Bankruptcy Court for the Southern District of New York recognized the Indonesian court-supervised restructuring plan for the Indonesian Duniatex textiles group ("Duniatex Group") under Chapter 15¹. Chapter 15 is a powerful and accessible tool for protection under the US Bankruptcy Code for non-US debtors facing litigation claims in the US.

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Legal Update:

Introduction

Introduction

In part 1 of our multi-part series on Corporate Insolvency, Restructuring and Recovery in the COVID-19 world,[1] we outlined two major changes introduced by the long-awaited Insolvency, Restructuring and Dissolution Act 2018 (“Act”). The Act officially came into force two days later, on 30 July 2020. Here in part 2, we explore the manner in which a company may seek to restructure its debts under the Act.

A. What is debt restructuring and in what circumstances would a company apply for one?

As in most countries around the globe, businesses and individuals in Singapore are grappling with the financial fallout from the COVID-19 pandemic.

Although not drafted with the effects of a pandemic in mind, new insolvency and restructuring laws in Singapore are timely and should provide valuable assistance in some circumstances.

The Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) consolidates Singapore’s personal and corporate insolvency, restructuring and dissolution laws into one omnibus legislation. Prior to this, the provisions pertaining to personal insolvency were contained in the Bankruptcy Act, while provisions related to corporate insolvency were contained in the Companies Act. The Bankruptcy Act and the relevant provisions in the Companies Act have since been repealed with the IRDA coming into force on 30 July 2020.

The Insolvency, Restructuring and Dissolution Act 2018, (Act No.40 of 2018, the "Act") , which came into force on 30 July, marks, for now at least, the final stage in what has been a far-reaching overhaul of Singapore's insolvency and debt restructuring regime.

Singapore confirms further widening of third-party funding options

In the recent case – Paulus Tannos v Heince Tombak Simanjuntak and others and another appeal [2020] SGCA 85 (‘Paulus Tannos’), the Singapore Court of Appeal held that in determining whether to recognise a foreign bankruptcy order, the Singapore Courts could decline to recognise the foreign bankruptcy order (‘BO’) if there was, according to Singapore law, a breach of natural justice in obtaining the foreign BO.

Facts